Hasbro’s Revenues Up 7 Percent in Q3 2017

Hasbro’s third-quarter revenues increased by 7 percent to $1.79 billion, as compared to $1.68 billion in the same period last year.

The company saw revenue growth of 7 percent to $993.8 million in the U.S. and Canada segment, which was negatively affected by the Toys”R”Us bankruptcy in the region; 7 percent in the international segment to $739.2 million, including a favorable $27.9 million impact on foreign exchange; and 4 percent in the entertainment and licensing segment to $58.4 million. There was revenue growth in franchise brands, Hasbro gaming and emerging brands, while partner brand revenues were slightly down. Operating profit was flat at $360.9 million and net earnings rose 3 percent to $265.6 million.

Brian Goldner, Hasbro’s chairman and CEO, commented: “The global Hasbro team delivered another good quarter. Our Brand Blueprint strategy is successfully driving the business despite a challenging economic environment in the U.K. and Brazil, as well as a short-term retailer disruption. As a result of the Toys”R”Us bankruptcy filing in the U.S. and Canada, there was a negative impact on our quarterly revenues and operating profit. However, our multiplatform content strategy, combined with an industry-leading investment in innovation and an omni-channel commercial approach, is driving strong consumer takeaway heading into the holiday season as consumers engage with Hasbro brands across a multitude of experiences.”

“The quarter presented several obstacles, but the team delivered with higher revenue and earnings, as well as executing nearly $93 million of share repurchases,” added Deborah Thomas, Hasbro’s chief financial officer. “We are well-positioned for the holiday, including good-quality inventory at Hasbro and at retail, backed by strong consumer momentum. We continue to work closely with Toys”R”Us as we head into the holiday period. Given our new view to the holiday based on Toys”R”Us and the economic outlook in certain markets, our updated expectation is fourth-quarter revenues will increase in a range of 4 to 7 percent versus the fourth quarter 2016.”