Toys 'R' Us bankruptcy hits Hasbro

Hasbro will restructure its business after third-quarter results missed analysts’ estimates, with the demise of Toys ‘R’ Us affecting the company’s sales.

Ticker	Security	Last	Change	Change %
HAS	HASBRO INC.	64.47	-0.56	-0.85%

“We continue to believe this is a near-term retail disruption that will last for the next few quarters,” Hasbro’s CEO Brian Goldner said referring to Toys ‘R’ Us during a conference call discussing Hasbro’s quarterly results.

Shares fell on the news. While the Toys ‘R’ Us’ bankruptcy and its impact on Hasbro’s results did not come out of the blue, Goldner had indicated that the toymaker may be able to mitigate some of the loss from the retailers’ bankruptcy in the second half of the year.  That appears less likely based on today’s results.

Hasbro announced Monday that it will restructure its business, which will result in job cuts and charges in the range of $50 million to $60 million in the current quarter.

Hasbro earned $1.93 per share – adjusted to exclude certain items – below the $2.23 analysts polled by Refinitiv forecast. Revenue came in at $1.57 billion, missing expectations for $1.71 billion.