Hasbro feels the pain of Toys R Us closings
PAWTUCKET, R.I. - The repercussions from the demise of Toys R Us have begun to ripple outward beginning with Hasbro (HAS), which on Monday reported a loss and plunging revenue for its first quarter.
Toys R Us, hammered by shifting consumer trends, is shuttering the 700 stores it has left, depriving Hasbro, Mattel (MAT) and other toymakers of prime display space nationwide.
"We are working to put the near-term disruption from Toys R Us behind us," Hasbro Chairman and CEO Brian Goldner said in a prepared statement.
For the period ended April 1, Hasbro's revenue dropped to $716.3 million, from $849.7 million. That's well below the $824.7 million that analysts surveyed by Zacks Investment Research forecast.
Hasbro's stock price tumbled more than 8 percent before the market opened Monday morning, and shares of Mattel, which reports earnings Thursday, fell nearly 5 percent.
With a turnaround at Mattel still elusive, CEO Margo Georgiadis is stepping down, the company said last week.
Hasbro -- which makes toys like My Little Pony and Transformers and games like Monopoly -- lost $112.5 million, or 90 cents per share in the first quarter. A year earlier the Pawtucket, Rhode Island, company made $68.6 million, or 54 cents per share. The current quarter had one week less than a year ago.
Adjusted for one-time costs and pretax expenses, earnings were 10 cents per share, less than a third of the 31 cents that Wall Street had expected.