Hasbro’s fourth-quarter net revenues were down 2 percent to $1.6 billion.
Hasbro reported a net loss attributable to the company of $5.3 million for the quarter, compared to net earnings of $192.73 million in the year-ago period. The latest quarter’s results included a net charge of $296.51 million related to the U.S. tax reform.
Franchise Brands revenues for the quarter increased 11 percent. Partner Brands revenues fell 21 percent. Hasbro Gaming revenues decreased 4 percent, while Emerging Brands revenue declined 5 percent.
Net revenues for the full-year 2017 increased 4 percent to $5.21 billion, compared to $5.02 billion in 2016. 2017 net revenues include a favorable $79.2 million impact from foreign exchange. Net earnings for the full-year 2017 were $396.6 million, compared to $551.4 million in 2016.
“Hasbro’s global team’s execution of our Brand Blueprint drove revenue gains in Franchise Brands, Hasbro Gaming and Emerging Brands, including immersive brand experiences across consumer products and digital gaming,” said Brian Goldner, Hasbro’s chairman and CEO. “Our strong performance ranked Hasbro number one across the G11 markets for the full-year 2017. In the fourth quarter, Hasbro Franchise Brand revenues increased 11 percent. However, overall consumer demand slowed in November and December both for the industry and for Hasbro. A decline in Partner Brands and Europe revenues resulted in us not meeting our fourth-quarter revenue expectations. Looking ahead, our innovative lines are supported by robust storytelling and digital initiatives that position us well for 2018 and beyond.”
“Over the past five years, we added over $1 billion in revenues to our top line, growing revenues four consecutive years, while meaningfully increasing operating profit, net earnings and generating significant cash flow,” added Deborah Thomas, Hasbro’s chief financial officer. “Hasbro is in a strong financial position with the cash and profitability to invest in growing our business for the long-term. Our team’s excellent job of understanding and assessing the global tax environment and managing associated risks contributed to strong underlying net earnings growth. In addition, our 2017 year-end results include an estimate for the expense associated with U.S. tax reform. We expect an ongoing benefit to our tax rate in future periods and will discuss this further at our Toy Fair Investor Event.”