Hasbro, Inc. (NASDAQ: HAS) shares fell in Monday’s first hour of trading, after reporting weaker-than-expected results for its third quarter.
The toy maker net revenues decreased 12% to $1.57 billion versus $1.79 billion in 2017.
The lower revenues reflect lost Toys"R"Us revenues in the U.S., Europe and Asia Pacific. In addition, revenues declined internationally, most notably in Europe, as the Company addresses changing consumer shopping behaviors, a rapidly evolving retail landscape and clearing through retail inventory. Foreign exchange had a negative impact of $32.0 million, or 2%, on third quarter 2018 revenues.
Net earnings for the third quarter 2018 were $263.9 million, or $2.06 per diluted share, compared to $265.6 million, or $2.09 per diluted share, for the third quarter of 2017. Reported net earnings include a favorable $17.3 million, or $0.14 per diluted share, tax benefit from U.S. tax reform. Adjusted third quarter 2018 net earnings were $246.5 million, or $1.93 per diluted share.
According to CEO Brian Goldner, "The global Hasbro team is effectively managing our business forward through a very disruptive year. The lost Toys"R"Us revenues are impacting many markets around the world, notably the U.S., Europe, Australia and Asia.”
On the cheerier side, Chief Financial Officer Deborah Thomas said. "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."
Shares faltered $4.28, or 4.4%, to $93.76
