Hasbro Inc. (HAS) - Get Hasbro, Inc. Report posted weaker-than-expected second quarter earnings Monday and said a third quarter recovery could set up a 'good' holiday season for the toy industry later this year.
Hasbro said adjusted profits for the three months ending in June were pegged at 2 cents per share, firmly south of the Street consensus forecast of 23 cents per share. Group revenues, Hasbro said, fell 12.6% to $860.3 million, and missed analysts' forecasts of a $994.6 million tally.
"The second quarter was much as we expected: strong point of sale for Hasbro brands countered by a very challenging revenue period due to global closures in our supply chain, across retailers as well as in entertainment production," said CEO Brian Goldner. "We believe the outlook improves from here. Consumers - children, families, fans and audiences - are relying on Hasbro brands and stories to connect and entertain themselves throughout this period."
"While the full-year COVID-19 impact geographically remains unpredictable, as stores reopen and we begin to return to production for entertainment we expect the environment to improve in the third quarter and set us up to execute a good holiday season," he added. "We have a strong entertainment lineup for 2021, through internally developed as well as third-party entertainment. We will also begin to see a greater benefit of synergies from the acquisition of eOne as we remain on track to deliver against our plan of $130 million in synergies by year-end 2022."
Hasbro shares were 3.2% lower in early trading immediately following the earnings release at $74.63 each, a move that would extend the stock's year-to-date decline to around 30%.