Hasbro Inc. (NASDAQ: HAS), a toymaker, today reported its third-quarter financial results, posting a decline in earnings and revenue. However, the company’s adjusted earnings beat Street estimates. The company also said that it is gearing up to increase sales in the upcoming holiday shopping period.
For the third quarter, HAS reported net earnings of $164.9 million, or $1.24 per share, compared to $171 million, or $1.27 per share reported for the same period in the previous year. Excluding one-time items, HAS reported earnings of $1.28 per share, beating Street estimates of $1.20 per share.
Revenue for the third quarter was $1.35 billion, down from $1.38 billion reported for the same period in the previous year. Excluding the impact of exchange rate fluctuations, the company’s sales for the quarter were $1.39 billion, beating consensus forecast of $1.38 billion.
HAS’s sales fell 7% in its international segment. The company saw sharp drop in sales in Europe and Asia. Sales in the company’s entertainment and licensing categories dropped 7% as well.
Brian Goldner, President and CEO of Hasbro, said that HAS is delivering on the objectives it set for the year. Goldner said that the U.S. and Canada segment operating profits are improving to historical levels and the Games category is stabilizing with innovative new offerings and partnerships. He added that the company is driving innovation across Hasbro and partner brands this holiday season including toys, games, digital play, licensed goods and immersive entertainment experiences for consumers around the world.
CFO Deborah Thomas said that HAS is entering the holiday season with exciting, innovative products. Thomas said that in the fourth quarter the company plans to drive these products and other initiatives with a significant increase in marketing support in an environment of significantly lower U.S. inventory.
HAS shares hit a 52-week high of $39.96 in early trading today. However, the stock has pared its initial gains and at last check, it was down 1.13% to $38.61 on volume of 1.15 million.
Year-to-date, HAS shares gained more than 23%, outperforming the S&P 500.
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