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. It has revised its expectation for fourth-quarter revenue, projecting an increase of 4% to 7% versus the fourth quarter 2016.
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.
Company execs will discuss the results with Wall Street analysts during a conference call later this morning.