Hasbro’s Q3 Revenues Down 12 Percent

Hasbro released its financial results for the third quarter, with net revenues down by 12 percent to $1.57 billion versus $1.79 billion last year.

The decrease reflects lost Toys“R”Us revenues in the U.S., Europe and Asia Pacific. U.S. and Canada segment revenues declined 7 percent, while international was down 24 percent. Entertainment and licensing revenues rose by 45 percent. The company’s operating profit margin remained flat at 20 percent.

“The global Hasbro team is effectively managing our business forward through a very disruptive year,” said Brian Goldner, Hasbro’s chairman and CEO. “The lost Toys’R’Us revenues are impacting many markets around the world, notably the U.S., Europe, Australia and Asia. The volume of product liquidated in the second quarter had a near-term impact on the third quarter sell-through and shipments. We are successfully managing retail inventory and it is down significantly in the U.S. and in Europe, where we are aggressively working to clear excess inventory by year end. A growing array of retailers are now ramping new programs to take share this holiday season and we are well-positioned to meet their demand.

“We continue to make meaningful organizational changes to ensure we have the right teams in place with the right capabilities to lead Hasbro into the future,” he continued. “Global retailers have ambitious programs this holiday season and we have innovative brand offerings across the portfolio, including programs behind our feature Transformers film, Bumblebee, set for release this holiday season. Our long-term commitment to building capabilities around our Brand Blueprint coupled with industry-leading investment in innovation positions us for a successful holiday season and beyond.”

“Hasbro remains in a strong financial position, including good operating profit margins, $907 million in cash and quality inventory to support our business this holiday season,” added Deborah Thomas, Hasbro’s chief financial officer. “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.”