Hasbro (NASDAQ:HAS) stock traded in positive territory after reporting a better-than-feared revenue decline in its second quarter, helped by new products for the Furby and Magic: The gathering IP.
Second quarter revenue was down 10% at US$1.21 billion, bringing the first half revenue total to US$2.211 billion.
The toy maker reported a US$235 million earnings loss, and, on a per share basis it came in at 49 cents, falling short of consensus market estimates pitched at 58 cents per share.
Hasbro (NASDAQ:HAS) sweetened the pill highlighting US$84 million of cost savings in the first half, under its ‘transformation’ plan, and, inventory was reduced 16%. It also noted that its proposed sale of the eOne Film & TV business was expected to close before the calendar year ends.
"The Hasbro (NASDAQ:HAS) team delivered a solid second quarter, with revenue ahead of our expectations, significant reduction of inventory, and meaningful progress toward our transformation and cost savings programs," said chief executive Chris Cocks.
While toy-rival Mattel, owner of the Barbie IP, enjoys its moment in the Hollywood sun, Hasbro (NASDAQ:HAS) noted the impact of the writers' and actors' strikes on the production of its IP content.
Entertainment saw a 3% decline in revenue, and, US$296 million of impairments including US$25 million related to the Dungeons & Dragons: Honor Among Thieves movie.
In New York, Hasbro (NASDAQ:HAS) stock traded up more than 3% changing hands just over US$66.50 per share in Thursday morning's deals.