Hasbro hit by Toys R’ Us
Company’s Q3 results released
Hasbro’s Q3 results are in and the company is reporting a decrease in net revenues. They fell 12 per cent to $1.57 billion versus $1.79 billion in 2017.
The lower figures reflect lost Toys R' Us revenues in the US, Europe and Asia Pacific, says the company.
Hasbro says its revenues declined internationally, “most notably in Europe”, as it battled changing consumer shopping behaviours, a rapidly evolving retail landscape and clearing through retail inventory. Foreign exchange also had a negative impact.
“The global Hasbro team is effectively managing our business forward through a very disruptive year,” said Brian Goldner, Hasbro’s Chairman and Chief Executive Officer. “The lost Toys R’ Us revenues are impacting many markets around the world, notably the US, Europe, Australia and Asia. The volume of product liquidated in the second quarter had a near-term impact on the third quarter sell through and shipments. We are successfully managing retail inventory and it is down significantly in the US and in Europe, where we are aggressively working to clear excess inventory by year end. A growing array of retailers are now ramping new programs to take share this holiday season and we are well positioned to meet their demand.
“We continue to make meaningful organizational changes to ensure we have the right teams in place with the right capabilities to lead Hasbro into the future,” continued Goldner. “Global retailers have ambitious programs this holiday season and we have innovative brand offerings across the portfolio, including programs behind our feature TRANSFORMERS film, Bumblebee, set for release this holiday season. Our long-term commitment to building capabilities around our Brand Blueprint coupled with industry-leading investment in innovation positions us for a successful holiday season and beyond.”
“Hasbro remains in a strong financial position, including good operating profit margins, $907 million in cash and quality inventory to support our business this holiday season,” said Deborah Thomas, Hasbro’s Chief Financial Officer. “As we manage through a very disruptive environment, the strength of our brands and our business allows us to continue to invest to drive profitable growth in future years.”