Hasbro Inc. Blames Toys ‘R’ Us after Poor First Quarter Performance

Hasbro Inc., an American multinational toy and board game company, reported on Monday its first quarter earnings, falling 16 percent in its revenues to $716.3 million. The company stated that drop was due to the ongoing liquidation of Toys ‘R’ Us.

The maker of products such as Transformers and My Little Pony has fleshed out more of its plan to replace sales that have evaporated with Toys ‘R’ Us’ demise. It would focus more on online selling and deeper partnerships with retailer giants, such as Target and Walmart.

Meanwhile, Toys ‘R’ Us, which filed for U.S. bankruptcy protection last September, is currently winding down its stores, having sales, and lowering prices for toymakers.

The UK stores of Toys ‘R’ Us are also liquidating. Hasbro, on the other hand, has decided to speed up its previously announced plan to shift more of its business online. As of now, the company has replaced many executive with newer people who have more knowledge about e-commerce.

The toy maker is already makes about one-fifth of its sales online and wants to ramp that up.

“We’re working aggressively around the world to put the impact of Toys ‘R’ Us behind us,” stated Brian Goldner, CEO of Hasbro.

“We are just building those plans to do that, but it takes some time.”

Meanwhile, Mattel Inc., the rival of Hasbro, is facing its own drama as the company announced last week that CEO Margo Georgiadis would leave Mattel and will be replaced by Ynon Kreinz, a Mattel director.

See also: Mattel Inc. Names its New CEO

Hasbro to Survive Post-Toys ‘R’ Us Era

According to an analyst, Susan Anderson, Hasbro is the most likely to survive the post-Toys ‘R’ Us era.

“They're well-positioned with their strategy,” stated Anderson. Her firm has an outperform rating on Hasbro.

“They have six Marvel films coming out this year,” Anderson added. “They've done a great job merging entertainment and toys. I think they'll continue to take market share once the dust has settled on all of this.”

However, Anderson also said that the liquidation of Toys ‘R’ Us is a good opportunity for Hasbro to pick up more brands, and she pointed to the announcement of the company last February that it will be “the global master toy licensee.”

“Overall, the business is pretty healthy for them despite Toys R Us,” stated Anderson.

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