PAWTUCKET – Hasbro Inc. reported a $60.3 million profit in the second quarter of 2018 on Monday, or 48 cents per diluted share, reflecting a 11 percent decline from the $67.7 million profit in the second quarter of 2017, or 53 cents per diluted share.
The company’s profit was a stark rebound from the $112.5 million loss in the first quarter of the year, which had been driven by the shuttering of Toys R Us.
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The company said that despite the rebound, revenue still had declined year over year in part to the Toys R Us liquidation. Revenue declined 7 percent year over year from $972.5 million in the second quarter of 2017 to $904.5 million in the April-June period this year.
“2018 is unfolding as expected as our teams manage the liquidation of Toys R Us in many markets and address the rapidly evolving European retail landscape,” said Brian Goldner, Hasbro’s chairman and CEO in a statement. “We are focused on moving beyond the near-term disruption of losing a major customer, with a clear path forward, including new retiler activations to meet the consumer demand made available by the Toys R Us departure.”
Investors found the rebound to be better than expected, as Hasbro’s stock price had jumped more than 12 percent to $105.34 in premarket trading.
Year over year, the company reported revenue declines in three of four of the company’s segments:
- Partner brands revenue declined 10 percent million to $208 million from $230 despite growth in BeyBlade and Marvel brands
- Franchise brands revenue declined 8 percent to $506.5 million from $552.4 million. The segment saw growth in the performance of Magic: The Gathering, Monopoly and Baby Alive, offset by declines in Transformers – which had a movie launch in the same 2017 period – and other brands
- Emerging brands declined 1 percent year over year to $55.6 million
- Hasbro Gaming revenues increased slightly to $134.3 million from $133.9 million, buoyed by revenue gains in Dungeons and Dragons, Duel Master, Jenga and Don’t Step In It
“Ou global teams executed well despite the disruption in the market,” stated Deborah M. Thomas, Hasbro’s chief financial officer. “With $1.2 billion in cash and a healthy balance sheet, our financial position is strong. Our diverse portfolio enabled us to partially offset the negative margin impact from lower revenues but not entirely.”
Chris Bergenheim is the PBN web editor.
