Hasbro reported decent third-quarter results this morning, with revenue rising 7% to $1.79 billion versus $1.68 billion in the year-ago quarter and net earnings inching up 3% to $265.6 million, or $2.09 per share, compared with $257.8 million, or $2.03 per share in the 2016 period.
Chairman and CEO Brian Goldner cited “a challenging economic environment in the U.K.and Brazil, as well as a short-term retailer disruption.” He said the Toys”R”Us bankruptcy filing in the U.S.and Canada caused “a negative impact on our quarterly revenues and operating profit. However, our multi-platform 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 company said it continues to work closely with Toys”R”Us heading into the holiday period. Warning of likely harm from the major retailer’s issues, Hasbro lowered its expectation for fourth-quarter revenue, projecting an increase of 4% to 7% versus the year-ago quarter.
Hasbro’s entertainment and licensing segment net revenue grew 4% to $58.4 million compared to $56.1 million in 2016, behind higher consumer products and entertainment revenues. Operating profit in that unit increased 20%, to $16.9 million, or 28.9% of net revenue, compared to $14.1 million, or 25.1% of net revenue, in 2016.