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Hasbro Stock Drops As CEO Takes Medical Leave Ahead of Holiday Quarter

Hasbro stock traded lower after the toy maker said CEO Brian Goldner will take a leave of absence while the company battles supply-chain issues ahead of the holiday season.

Hasbro  (HAS) - Get Free Report shares traded lower Monday after the toymaker said CEO Brian Goldner, who was treated for prostate cancer in 2014, will take a medical leave of absence.

Hasbro referred to Goldner’s disclosure in August 2020 that he was undergoing continued medical care following treatment for cancer in 2014.

Goldner's temporary departure comes as Hasbro battles industry-wide supply-chain issues to ensure its toys hit store shelves in time for the pivotal holiday season. Rich Stoddart, a lead independent director on Hasbro’s board, will serve as interim CEO effective immediately, the company said in a statement Sunday.

"I am humbled to step in as Interim CEO and lead the company as it continues to execute the Brand Blueprint strategy, while Brian takes time to focus on his health. Hasbro has the most creative teams across the consumer products, digital gaming and entertainment businesses, and there’s no limit to what we can accomplish together," said Stoddart in a statement.

Hasbro shares were marked 0.8% lower in early trading Monday to change hands at $89.30 each, a move that would nudge the stock's year-to-date decline to around 4.5%.

In July, Hasbro posted stronger-than-expected second quarter earnings with its recent focus on digital gaming and entertainment continued to add to the toymaker's top and bottom lines.

Entertainment revenues, which include its popular Peppa Pig franchise, were up 47% to $226.7 million, Hasbro said, while its traditional consumer products revenues were up 33% at $689.2 million. Wizards of the Coast & Digital gaming sales rose fourfold to $406.3 million, Hasbro said.

Hasbro CEO Goldner has said the toymaker is 'on track to our target of double-digit revenue growth for the full-year' following a Wall Street-beating second quarter.

Goldner joined Hasbro in 2000 and became CEO in May 2008. He led the $4 billion acquisition of Entertainment One in 2019, making a big bet on entertainment aimed at young children, and signed deals to cement Hasbro’s hold on Star Wars, Marvel and Disney characters, The Wall Street Journal reported.