The Monopoly board game from toy maker Hasbro at a New York City toy store.
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Store closings, product shortages, and reduced retail inventory hampered Hasbro in the second quarter as the company faced the consequences of the global coronavirus pandemic.
Despite strong demand for toys in the quarter, Hasbro’s revenue fell 29% on a pro forma basis.
The company’s shares fell 11% in premarket operations on Monday, due to weaker-than-expected results.
For the quarter ended June 28, Hasbro posted a net loss of $ 33.9 million, or 25 cents a share, compared to a profit of $ 13.4 million, or 11 cents a share, a year ago.
Excluding items, Hasbro 2 cents per share. Analysts polled by Refinitiv expected Hasbro to earn 23 cents a share.
Revenue fell to $ 860.2 million, which was less than the $ 922 million analysts had expected.
Almost 30% of its global toy and game revenue comes from online sales.
The company’s gaming portfolio remained strong during the quarter, with revenue in the category increasing 11%, driven by sales from Jenga, Connect 4, Mouse Trap and Twister. However, the disruption in Hasbro’s supply chain resulted in low stock levels and limited its number of shipments during the quarter.
Hasbro said shipments and sales improved as stores began reopening at the end of the quarter. He said this trend continued in July.
“We believe that prospects improve from here,” Hasbro CEO Brian Goldner said in a statement. “… we expect the environment to improve in the third quarter and prepare us for a good holiday season.”
Hasbro, who works with major studios, was also affected by the closure of movie theaters and the lack of highly successful new features on the big screen. Goldner noted that the company has a strong entertainment lineup for 2021 with partnerships and for its own list of movies.
While the pandemic has stymied live TV and movie production, animation production has continued for brands like Peppa Pig, PJ Masks and Hasbro’s upcoming feature film “My Little Pony”.
Sales of action figures in the toy industry have been slow due to the delay in the movie list. Hasbro owns the master toy license for Marvel and Star Wars. Still, Hasbro said sales remained strong for its “Frozen 2” and “Star Wars” collections.
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