Hasbro's business figure is lower than estimates while the impact of Toys R Us persists

Toymaker Hasbro on Monday missed analysts' estimates of revenue and quarterly profits, as the disappearance of its largest retail partner, Toys R Us, resulted in a 9% drop in shares early in the year. meeting.

Investor expectations were high since the beginning of the quarter, after CEO Brian Goldner and Wall Street analysts said Hasbro could mitigate some of the loss from the toy retailer's bankruptcy second half.

Hasbro, however, announced a 7% drop in its quarterly sales in the United States and Canada, which amounted to $ 924.2 million, due to Toys & # 39; R & # 39; s revenue loss. They and the impossibility of responding to shipping requests from other retailers.

Hasbro and his rival Mattel have been striving to find new avenues to sell their products after the sudden collapse of Toys' R & # 39; Us, one of the largest independent toy retailers in the world, last year.

The fall in Hasbro's international sales was much greater. The 24% drop is also due to changing trends in consumer purchases.

Thousands of manufacturers selling on Amazon.com and other e-commerce sites, as well as young children preferring electronic games to physical toys, have also shaken the traditional players of the sector in recent years.

Hasbro has sought to mitigate the effects of these headwinds by partnering with film studios such as Marvel and Disney, selecting some of its properties and translating them into successful online television shows, movies and videos. . The biggest example is the franchise "Transformers".

But sales of Hasbro franchise brands, which also include Monopoly and Nerf toys, dropped 5%, in part due to the lack of release of the new Transformers movie in the quarter.

The company also announced Monday the restructuring of its business, which would involve job cuts and would lead to charges of 50 to 60 million dollars in the quarter.

Net income decreased to $ 263.9 million, or $ 2.06 per share, in the third quarter of September from $ 265.6 million, or $ 2.09 per share, a year earlier. early.

Excluding certain items, Hasbro achieved a net profit of $ 1.93 per share, exceeding the average estimate of $ 2.23 set by analysts, according to Refinitiv estimates.

The company's revenues fell 12% to $ 1.57 billion, which is also below expectations of $ 1.71 billion.

The Hasbro shares in Pawtucket, Rhode Island, lost 7.2% to $ 91 before Monday, while those of Mattel lost nearly 3%.

Hasbro shares have gained about 8% since the beginning of the year, while those of Mattel have fallen by more than 7%.