Shares of toy maker Hasbro (NASDAQ: HAS) plummeted on Monday markets after the company posted weaker-than-expected earnings following the liquidation of Toys R Us.
"As we discussed earlier in the year, our first quarter was expected to be difficult," CEO Brian Goldner said in a statement Monday. "We are working to put the near-term disruption from Toys R Us behind us."
Hasbro warned in February that residual effects from the bankruptcy of Toys R Us would weigh heavily on the brand for the first two quarters of 2018. Toys R Us said announced its liquidation last month.
Adjusted Earnings per Share came in at 10 cents vs. 33 cents expected, while revenue: $716.3 million vs. $814 million projected.
Hasbro reported a net loss of $112.5 million, or 90 cents per share, in the first quarter ended April 1, compared with a profit of $68.6 million, or 54 cents per share, a year earlier.
Excluding items, the company earned 10 cents per share, far less than the 33 cents analysts has expected. Total revenue fell 16% to $716.3 million, well below estimates of $814 million.
According to Hasbro Chief Financial Officer Deborah Thomas said, "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,"
Hasbro shares collapsed $3.11, or 3.8%, to $79.70, within a 52-week trading range of $82.45 to $116.20.
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