Shares of toy maker Hasbro (NASDAQ:HAS) plummeted Friday after the company said it was more negatively impacted by the liquidation and closure of Toys R Us than it had forecast.
Hasbro said that earned $1.33 per share on $1.39 billion in revenue during the fourth quarter, compared to the $1.67 per share on $1.52 billion analysts had expected.
Hasbro and rival toy maker Mattel (NASDAQ:MAT) had to scramble to find new retail locations for their products in the wake of Toys R Us' bankruptcy.
Said CEO Brian Goldner, "2018 was a very disruptive year, driven by the bankruptcy and liquidation of Toys R Us across most of the world and a rapidly shifting consumer and retail landscape.
“During 2018, we diversified our retailer base, meaningfully lowered retailer inventories, and delivered innovative new offerings to our global consumers."
Hasbro's portfolio took a big hit in the quarter. Sales of franchise brands, like Nerf, Monopoly, and My Little Pony, fell 8% and partner brands which include "Star Wars," "Frozen," and "Marvel" merchandise, slumped 20% in the fourth quarter.
The company's gaming category, which includes Magic: The Gathering and Monopoly, also took a hit, tanking 22%
In the U.S., customers spent $21.6 billion on toys in 2018, less than the $22 billion shelled out for action figures, dolls, and games in 2017, according to market researcher NPD Group.
Shares in Hasbro were unchanged at $90.25 soon after Friday’s opening bell
