The demise of Toys "R" Us Inc. challenged Hasbro Inc., which delivered worse-than-expected results in the first quarter
The world's largest listed Toymaker lost $ 112 in the quarter, 5 million against a profit of $ 68.6 million a year earlier, the company said on Monday in a statement. This brought down the shares in early trading by 3.6 percent.
Toys "R" Us, one of Hasbro's largest customers, went bankrupt in September, had a terrible fourth quarter and announced the dissolution of several divisions. US toy manufacturers are also struggling with slowing growth and fear that success in producing so many products will wane on the basis of ever-growing child entertainment.
Hasbro declined sales in all businesses during the quarter, although brands such as Monopoly and Dungeons and Dragons performed well.
The company had expenditures of $ 61
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"We're working t The short-term disruption of Toys' R" Us is behind us, "Goldner said in the statement. "Our global retailers see this as an opportunity in an important consumer category and work with Hasbro to develop growth plans for our brands."
Hasbro shares fell to $ 78.80 in the pre-market swap. They had fallen 8.9 percent this year by the end of Friday.
The first quarter, which runs until March, is Hasbro's smallest after revenue. This is usually when Toymaker rebuild inventory for the remainder of the year. Sales fell 16 percent to $ 716.3 million, the Pawtucket, Rhode Island-based company said in a statement. Analysts had estimated an average of $ 821.2 million. Excluding the cost of toys and other items, earnings dropped to 10 cents a share compared to 32 cents.