Fourth quarter revenue to increase to between $1.70-$1.74b, only slightly below analyst’s expectations.
The US toymaker, which was selling about 9% of its total inventory through Toys R Us stores, said the Chapter 11 filing raised uncertainty about the timing and amount of toys it would ship to the retailer in the fourth quarter.
Despite this, the company has reported third-quarter profit of $265.6m, or $2.09 per share and a 7% rise in revenue to $1.79b.
Hasbro said it expects fourth quarter revenue to increase 4-7%, or $1.70-$1.74b. Analysts on average had expected $1.82b.
Chief executive Brian Goldner said the bankruptcy had created a “fluid environment” for the company’s shipments, but downplayed its long-term effect, saying it would not hurt 2018 results.
“As a result of the Toys R Us bankruptcy filing in the US and Canada, there was a negative impact on our quarterly revenues and operating profit,” Brian stated. “We continue to work closely with Toys R Us as we head into the holiday period.”