Hasbro’s first-quarter earnings have been posted. It’s a mixed bag of interpretation, but one of the blames is placed on the Toys R Us liquidation. Click through to read the full story and CNBC. You can also click through here for a couple of bullet points made as well.
Update: more details and link to official Hasbro presentation added!
- Hasbro blames the Toys R Us liquidation for its weaker-than-expected earnings in the first quarter. There were $52.3 million of bad debts in the USA and $11.2 million in Europe. Which basically means Toys R Us didn’t pay for the toys they received, which is a major factor for the reported loss.
- Europe saw a revenue decline of -28%, which is staggering. Hasbro blames “inventory overhang” on top of the decline of Toys R Us. In the USA & Canada it’s also a hefty -19% revenues.
- The toy maker’s portfolio took a big hit in the quarter, with sales of toys in all of its categories falling.
- Partner Brands are down by 6% in the 1st quarter. However, Beyblade and Marvel saw growth, but this was offset by the other partner brands such as Star Wars and Frozen. So, Star Wars toy sales are also down (however, Frozen is also a partner brand, so no definitive numbers are known) and Star Wars toy sales continue to decline.
- CFO Deborah Thomas says the numbers “do not reflect the health of our underlying business.”
“Our underlying financial strength is sound, and despite the near-term challenges associated with a major customer liquidation, Hasbro is positioned to manage a challenging 2018 and drive growth in 2019 and beyond,” Deborah Thomas, Hasbro’s chief financial officer, said in a statement. “The quarter’s revenue and profits were negatively impacted by lower revenues and higher expenses associated with events that do not reflect the health of our underlying business.”
Click here to read the official Hasbro presentation (PDF file)!