According to Reuters, one of the world's largest toy manufacturers, Hasbro, a well-known toy company in the United States, released a disappointing financial forecast on Monday, dragging down the stock price once fell 10%. The company warned that the toy counter The bankruptcy of Toys'R'Us could affect the company's sales of merchandise in the coming holiday season.
Although Hasbro's third quarterly latest quarterly results show that quarterly company profits of 265.6 million US dollars, revenue increased 7% to 1.79 billion US dollars, but the company said that due to its important retail partner Toys R Us in September Filed for bankruptcy protection in the United States and Canada, making the company more uncertain point in time and quantity shipped to the retailer in the fourth quarter According to "Daily Economic News" reporter learned that Hasbro 9% of sales From Toys R Us, is the second largest supplier of Toys R Us after Walmart.
Holiday season revenue less than expected
Under the dual effects of the ROP of the Toys R Us and the sluggish economy in the United Kingdom and Brazil, Hasbro's third quarterly quarterly results show that it expects fourth-quarter revenue of the company to increase by 4% to $ 16.3 billion last year. 7%, which is well below Wall Street's forecast of an 11% increase, and Hasbro's fourth fiscal quarter, according to an earlier analysis by Thomson Reuters I / B / E / S, Revenue estimates for the 1.7 billion to 17.4 billion US dollars, also lower than analysts had estimated 1.82 billion.
"Because Toys R Us filed for bankruptcy protection in the United States and Canada, it has a negative impact on our quarterly revenue and operating profit," said Brian Goldman, CEO of Hasbro, in a statement. We have temporarily stopped shipping to Toys R Us in the quarter, but we will continue to work with Toys R Us as we enter the holiday season.
'This is a shift we expected before,' said Goldner. 'But the momentum of consumption will continue to drive the growth of our business, and in fact we are in the best position of any number of different combinations.'
According to the Daily Economic News, Hasbro's share has risen by 26% this year as of late last week, but its share price plummeted 8.4% at its close on the day it was announced, the largest decline in three months.
Hasbro's polls also hit rivals, with Mattel and Jakks Pacific toys closing down 3.19% and 2.94% respectively on Monday.
New sales channels may reduce the negative impact
But Hasbro CEO Goldner expressed optimism about the company's prospects and said Toys R Us will not affect next year's performance.Godner appease investors, the impact of the toy R Us bankrupt on Hasbro is weakened, Because Hasbro's toys are sold in a wide range and the fate of the industry is not tied to a single seller, in fact, in addition to selling toys in physical stores, online sales are much faster than offline.
'Consumers will continue to buy our products,' said Goldner. 'We are excited to see that online sales have more potential than physical sales, especially when consumers find that they can access us more quickly and easily through online shopping Product
He said broader sales channels mean Hasbro could find new ways to sell their inventory instead of relying on the toy R Us.
Optimism for Hasbro is not only driven by confidence in online sales but also with long-term partnerships with the entertainment industry, which recently licensed the company to launch a massive Star Wars drama to be released in December: The Last Jedi Surrounding Toys, a return of Luke Skywalker, the core character in this forthcoming movie, and the successor of Hasbro's Luke Sky Walker dolls are also popular on the market.
The Daily Economic News notes that Hasbro has been a major retailer of Lightsaber, a major Star Wars prop item, and Hasbro regularly launches a new version of its Light Saber within a decade of starfight movies Consumers.However, after cooperation with Disney, Hasbro's sales have been rising.In 2017, Hasbro's "Transformers 5 "and the rainbow pony-based movie will be released, with Marvel's" Galaxy Guard 2 ", Disney reality film" Beauty and the Beast "and the latest Star Wars, these popular movie content with the combination of toy products More popular than traditional toys, it is also expected to bring a new wave of toy purchases.