Hasbro's revenue misses estimates as Toys 'R' Us blow lingers

Thomson Reuters

(Reuters) - Toymaker Hasbro Inc reported a bigger-than-expected drop in quarterly revenue on Monday, as the bankruptcy of long-term customer Toys 'R' Us weighed on sales in the United States and Europe, sending its shares down 4.5 percent in early trading.

The company also said it was undertaking steps to streamline its business that would include job cuts and result in charges of $50 million to $60 million in the current quarter.

The sudden collapse of Toys 'R' Us, the world's largest standalone toy retailer, has forced Hasbro and rival Mattel Inc to find avenues to sell their products, denting their sales in the near term.

Sales in Hasbro's U.S. and Canada segment fell 7 percent to $924.2 million, due to the loss of Toys 'R' Us revenue and an inability to meet shipping demands of other retailers.

Net earnings fell to $263.9 million, or $2.06 per share, in the third quarter Sept. 30, from $265.6 million, or $2.09 per share, a year earlier.

Excluding certain items, Hasbro earned $1.93 per share, missing the average analyst estimate of $2.23.

The company's revenue fell 12 percent to $1.57 billion, while analysts on average had expected $1.71 billion, according to Refinitiv estimates.

(Reporting by Aishwarya Venugopal in Bengaluru; Editing by Sriraj Kalluvila)

See Also:

• State of Play: Democrats threaten Trump's grip on the Great Lakes

• Zambia revives plan to cull 2,000 hippos over next five years

• North Korea bought at least $640 million in luxury goods from China in 2017, South Korea lawmaker says