American toy making company Hasbro Gaming (NASDAQ:HAS) announced its 2018 first quarter financial results Monday morning.
The overall results were disappointing, with net revenue decreasing 16%, or USD $133.4 million, to a total of $716.3 million.
During the same time of the previous year, Hasbro’s net revenue was $849.7 million.
According to the company, the drop in revenue was due to the bankruptcy and liquidation of Toys ‘R’ Us stores in the US and the UK.
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Total net revenue within the US and Canada fell by 19%, while it fell by 28% in Europe, decreased by 2% in Latin America, and 3% in the Asia Pacific market.
According to Chairman and CEO, Brian Goldner, the company is “working to put the near-term disruption from Toys ‘R’ Us behind [them].”
Hasbro Gaming predicted that results for the first quarter of 2018 would be low, but are now accelerating “plans [the company] originally had spread throughout the year to transform [their] commercial organization on a more immediate basis.”
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Partner Brand revenue also dropped 6%, overall, but was offset by revenue growth in Marvel and Beyblade products.
During the first quarter, Hasbro also repurchased 427.1 thousand shares of common stock for $38.8 million, at an average of $90.81 per share.
Hasbro CFO, Deborah Thomas, has said the company’s “underlying financial strength is sound, and despite the near-term challenges associated with a major customer liquidation, Hasbro is positioned to manage a challenging 2018 and drive growth in 2019 and beyond.”
The company is set to still be on track to meeting its goal of generating $600 to $700 million in operating cash flow for the year.
Shares of Hasbro went up by approximately 3% on Monday, but have reached a low of $79.00.
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