Shares of Hasbro Inc. (NASDAQ:HAS) plunged in pre-market trading on Monday after the toy maker posted weaker-than-expected earnings following the liquidation of Toys “R” Us.
Hasbro shares plunged 7.3% to US$76.78 in pre-market trade.
Hasbro reported first quarter March 2018 earnings of US$0.10 per share on revenue of US$716.3 mln. The consensus earnings estimate was US$0.31 per share on revenue of US$826.2 mln.
The decrease in revenues is the result of the liquidation of Toys “R” Us in the U.S. and U.K., as well as retail inventory overhang, primarily in Europe.
"As we discussed earlier in the year, our first quarter was expected to be difficult," Hasbro CEO Brian Goldner said in a statement on Monday. "We are working to put the near-term disruption from Toys “R” Us behind us."
Hasbro warned in February that lingering effects from the bankruptcy of Toys "R" Us would weigh heavily on the brand for the first two quarters of 2018.
All Toys “R” Us stores are expected to be fully liquidated by June.