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The US toy maker attributes its weak quarterly results to a "very disturbing" 201 year in which the dollar has strengthened.
Hasbro yesterday released its third quarter results this year. in which it suffered a 7% drop in its sales in the United States and Canada, the biggest market of the toy manufacturer, sign that the group is still suffering from the collapse of the US chain Toys "R" Us. [19659003] However, the strength of the dollar and the fact that the firm failed to meet all its shipping demands at the end of September nor to meet market expectations in terms of revenues and of income have contributed to aggravate the situation.
stocks fell to 7.9% yesterday, its lowest intraday level since October 2017, the same percentage that had managed to accumulate all year through Friday. At the end of the day, equities recovered and closed with a decline of 3.09% to 95.01 US dollars. dropped by 24% due to the constant evolution of consumer trends and the advancement of ecommerce platforms such as Amazon.
Hasbro tried to overcome these obstacles by combining with film studios such as Marvel and Disney. by conducting some of their own products directly on the small screen, at the movies and in online videos. The biggest example is the Transformers franchise.
However, she did not have more success. The company said its turnover fell by 12% between June and September, to stand at US $ 1,570 million, compared to US $ 1,790 million for the same period last year. last year.
$ 263.8 million compared to $ 282.7 million forecast
The performance was marked by weak sales of franchises such as My Little Pony, Monopoly and Transformers, which fell by 5%, partly because of the lack of launch. new movies or programs. Although gains were recorded in other areas, the company explained that they were not enough to offset the decline.
"troubling year"
Faced with the poor results, the executive director of the company, Brian Goldner, tried yesterday for a long time. convince investors during a conference call that the release of Toys "R" Us will affect the business, but in the short term, and that it will extend over "a few more quarters".
"This year was very dark, disturbing," said Goldner, with the support of financial director Deborah Thomas. "While navigating in a disruptive environment, the strength of our brands and our business allows us to continue investing to support our future growth," he said.
In March, Goldner recognized the effects of the giant's fall and said he was "determined to overcome it". . The traditional toy store went bankrupt in September 2017, but it is this year when it announced that it would wind up most of its divisions, including its stores in the United States.
Eyes are now turning to major toy manufacturers, ad portas of the Christmas season, so there is some doubt about how traditional businesses will cope with multiple winds.
Important Changes
The revelation of the results comes one week after the announcement of Hasbro. which is going through a period of "very important organizational changes", which include a reduction of the workforce up to 10% and which would entail costs of between 50 and 60 million US dollars for the current quarter.
And that is to say that in addition to Toy "R" Us, Hasbro had to deal with changes in the way retailers manage their inventory because large chains want to stay on tablets the products and for less time, which weighs the results.
In response, the company has begun to modernize its supply chain, but says it will take longer.
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