Monopoly maker Hasbro (NYSE:HAS) disclosed a 0.6% decline in fourth-quarter profits and posted worse-than-expected revenue amid slumping game sales.
The mixed earnings report sent shares of the Pawtucket, R.I.-based toymaker falling more than 3% in premarket action.
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Hasbro, which also makes Transformers toys and Nerf footballs, said it earned $139.1 million, or $1.06 a share, compared with a profit of $140 million, or 99 cents a share, a year earlier. Analysts had been calling for EPS of $1.05.
Revenue climbed 4% to $1.33 billion, narrowly missing the Street’s view of $1.34 billion. Operating margin expanded to 16.3% from 15.7%.
“We did not meet our expectations for growth in the U.S. and Canada segment, as we experienced weaker demand than we had anticipated, especially post-Thanksgiving, including challenges in the Games & Puzzles category,” CEO Brian Goldner said in a statement. “We have taken significant steps by putting new leadership and new plans in place to re-accelerate growth and innovation in both of these important areas.”
Hasbro said its games and puzzles segment, which includes Monopoly and Twister, suffered an 11% decline in revenue to $370.6 million last quarter. Girls revenue retreated 16% to $250 million, while boys sales soared 29% to $536.3 million.
U.S. and Canada sales slipped 2% to $592.8 million, while European revenue rose 9% to $464.1 million.
The company was also hurt by a rising tax bill as it disclosed a 50% leap in income taxes to $50 million.
Shares of Hasbro, which have soared more than 12% so far this year, fell 3.10% to $34.75 ahead of the open