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Hasbro, Inc. today reported financial results for the first quarter 2018. Net revenues for the first quarter 2018 decreased 16% to $716.3 million versus $849.7 million in 2017. The decrease in revenues is the result of the liquidation of Toys“R”Us in the U.S. and U.K., along with uncertainty in its other operations, as well as retail inventory overhang, primarily in Europe. Net loss for the first quarter 2018 was $112.5 million, compared to net earnings of $68.6 million, in 2017. Excluding the Non-GAAP Adjustments noted above, adjusted net earnings for the quarter were $12.4 million. The first quarter 2018 was a 13-week period versus the first quarter 2017 which was a 14-week period. “The Hasbro teams executed extremely well during a challenging first quarter,” said Brian Goldner, Hasbro’s chairman and chief executive officer. “Hasbro brands are resonating with consumers and consumer takeaway is positive. However, as we discussed earlier in the year, our first quarter was expected to be difficult. We are working to put the near-term disruption from Toys“R”Us behind us. Our global retailers view this as an opportunity in a key consumer category and are partnering with Hasbro to develop growth plans for our brands.” First quarter 2018 U.S. and Canada segment net revenues decreased 19% to $364.3 million compared to $451.6 million in 2017. The segment reported an operating loss of $23.4 million compared to an operating profit of $64.8 million in 2017. First quarter 2018 International segment net revenues were $287.9 million compared to $345.3 million in 2017. International segment revenues include a favorable $19.5 million impact of foreign exchange. On a regional basis, Europe net revenues decreased 28%, Latin America increased 2% and Asia Pacific increased 3%. Emerging markets net revenues decreased 5% in the quarter. The International segment reported an operating loss of $56.1 million compared to an operating profit of $0.5 million in 2017. The decline in operating profit reflects lower revenues and includes $11.2 million of pre-tax expense associated with Toys“R”Us. Entertainment and Licensing segment net revenues increased 21% to $64.0 million compared to $52.7 million in 2017. Operating profit increased 23% to $13.9 million, or 21.7% of net revenues, compared to $11.3 million, or 21.5% of net revenues, in 2017. Revenue growth was driven by consumer products and digital gaming. First quarter 2018 Franchise Brand revenues decreased 19% to $361.7 million. Growth in Monopoly was offset by declines in all other Franchise Brands in the quarter. Partner Brand revenues declined 6% to $200.6 million. Revenue growth in Marvel and Beyblade was more than offset by declines in other Partner Brands. Hasbro Gaming revenue decreased 22% to $105.2 million. Revenue gains in Dungeons and Dragons, Jenga and several new game launches were offset by declines in other properties. Emerging Brands revenue declined 6% to $48.8 million. Revenue increases from Stretch Armstrong and Littlest Pet Shop products were offset by declines in other Emerging Brands. |
