Hasbro (NYSE:HAS) said Wednesday it expects its second quarter to take a hit from the coronavirus pandemic, but it expects to be ready for the holiday season.
The comments come as the toymaker reported its first-quarter earnings, telling investors that it has a solid financial footing and is cutting costs as it prepares to meet the seasonal demand that comes in the second half of the year.
The coronavirus pandemic has led to store closures due to country-wide restrictions on social interactions as well as global production shutdowns. It’s also created uncertainty, which prompted Hasbro to withdraw its fiscal 2020 financial outlook.
However, Hasbro has benefited from an increased demand for family games, which spiked during the quarter and into April.
CEO Brian Goldner told the media Wednesday, "People want to make social connections and we’re seeing it across the board."
In the quarter ended March 29, the company swung to a net loss of $69.6 million, or 51 cents a share, from net income of $26.7 million, or 21 cents a share, in the year-ago period.
Excluding non-recurring items, such as eOne acquisition-related expenses, adjusted earnings per share came to 57 cents, below the consensus of 58 cents.
Revenue rose to $1.11 billion from $732.5 million but came up shy of the consensus of $1.14 billion.
Goldner said that sales across every category, including preschool, kids, adults and family games, saw growth during the quarter. Hasbro’s gaming category, including Magic: The Gathering, Monopoly and Hasbro Gaming, grew 40%.
HAS shares slumped $4.94, or 6.3%, to $72.92.
