Toymaker Hasbro (NYSE:HAS) posted a decline in third-quarter earnings and reported revenues on Monday but said it is gearing up to grow sales in the high-traffic holiday shopping period.
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The Pawtucket, Rhode Island-based operator of the PlaySkool, Nerf and G.I. Joe brands posted net earnings of $164.9 million, or $1.24 a share, down 4% compared with a year-earlier profit of $171 million, or $1.27.
Excluding one-time items, Hasbro said it earned $1.28, topping average analyst estimates of $1.20 in a Thomson Reuters poll.
Revenue for the three-month period fell slightly to $1.35 billion from $1.38 billion a year ago. Excluding a negative $47.4 million impact related to foreign exchange rates, though, sales grew to $1.39 billion, slightly beating the Street’s view of $1.38 billion.
Shares of Hasbro fell more than 2.3% to $38.15 after the bell but have since started to bounce back. In recent trade, shares were down less than 1% to $38.99.
“We are delivering on the objectives we set for the year,” Hasbro CEO Brian Goldner said in a statement. “The U.S. and Canada segment operating profits are improving to historical levels and the games category is stabilizing with innovative new offerings and partnerships.”
By segment, sales slipped by 7% in its international segment, as a 9% increase in Latin America was offset by sharp declines in Europe and Asia Pacific. Sales also fell by 7% in its entertainment and licensing categories, but were partially offset by a 1% improvement to $774.5 million in its U.S. and Canada group.
Looking toward the key holiday shopping period, Hasbro said it believes it will again grow revenues and earnings per share in the current quarter when excluding the impact of one-time items such as negative foreign exchange rates. The gains will be led by an array of new products added to its portfolio this year, including new additions to the Marvel line.
“In the all important fourth quarter, we plan to drive these and other initiatives with a significant increase in marketing support in an environment of significantly lower U.S. retail inventory,” Hasbro Chief Financial Officer Deborah Thomas said.