Hasbro said adjusted earnings for the three months ending in September came in at $1.84 per share, down 4.6% from last year and well shy of the Street consensus forecast of $2.21 per share. Group revenues, Hasbro said, were largely flat to last year at $1.58 billion, but again missed analysts' estimates of a $1.71 billion tally.
"Hasbro remains on track to deliver profitable revenue growth in 2019, behind innovation in gaming, toys and around Hasbro's Brand Blueprint," said CEO Brian Goldner. "However, as we've communicated, the threat and enactment of tariffs reduced revenues in the third quarter and increased expenses to deliver product to retail."
Hasbro shares were marked 16.6% lower at the start of trading following the earnings release to change hands at $100.17 each, a move that would still leave the stock with a healthy year-to-date advance of around 23%.
Tariffs on toys made in China and imported into the United States were hit with a 10% tariffs on September 1, although the U.S. Trade Representative delayed levies on "certain toys" until mid-December.
"In addition, third quarter operating profit was negatively impacted versus last year from lower Entertainment, Licensing and Digital segment margins, a higher revenue mix of lower margin Partner Brands and incremental shipping and warehousing costs which partially offset our cost savings," said CFO Deborah Thomas.
"We anticipate disruption throughout the remainder of 2019 as retailers work to manage costs and inventory and we are working to mitigate the impact on consumers this holiday season," she added.