Hasbro completed the sale of Entertainment One to Blackstone for $3.8 billion.
Hasbro's Q3 net earnings were $220.5 million, down from $264.9 million a year ago.
The company's shares fell by 7% in premarket trading following the earnings announcement.
The toy industry is expected to grow by only 1% this year, compared to a 16% increase in 2020.
Hasbro Inc., a multinational conglomerate with play and entertainment brands, reported its third-quarter earnings, indicating a potential slowdown in the toy industry. The company's shares fell by 7% in premarket trading following the announcement. The company's net earnings for the quarter were $220.5 million, or $1.61 per share, down from $264.9 million, or $1.88 per share, a year ago. Revenue for the quarter was $1.85 billion, slightly below the $1.86 billion expected by Wall Street.
Hasbro's CEO, Brian Goldner, stated that the company is facing supply chain challenges, which are impacting the availability of products and increasing costs. The company is also expecting a soft holiday season due to these challenges. Despite the difficulties, Goldner expressed confidence in the company's ability to navigate the situation and deliver growth in the future.
In addition to the earnings report, Hasbro also announced the completion of the sale of Entertainment One (eOne) to Blackstone for $3.8 billion. The sale is part of Hasbro's strategy to focus on its core toy and game business. The company plans to use the proceeds from the sale to reduce debt and make strategic investments.
The toy industry as a whole is also facing potential slowdowns. According to a report by NPD Group, toy sales in the U.S. are expected to grow by only 1% this year, compared to a 16% increase in 2020. The report suggests that the slowdown is due to a combination of supply chain disruptions and a shift in consumer spending habits as pandemic restrictions ease.
Hasbro (HAS) – The toymaker reported quarterly earnings of $1.88 per share, 2 cents a share above estimates.
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Hasbro, the multinational conglomerate and toy manufacturer, has warned of a potential industry slowdown in toy sales.
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Hasbro's sale of Entertainment One to Blackstone is set to close in early 2023.
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Hasbro reported third-quarter net earnings of $213.4 million.
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Hasbro is cautioning investors about potential 'holiday softness' following a slide in third-quarter earnings.
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