While Toys ‘R’ Us’ filing for bankruptcy in has undoubtedly impacted Hasbro’s bottom line, the Rhode Island-based toymaker saw its revenue climb by 7% to US$1.8 billion in Q3 2017.
Meanwhile, net earnings for the third quarter grew 3% to US$265.6 million while operating profit decreased slightly to US$360.9 million (compared to US$362.1 million last year).
Toys “R” Us, along with certain of its US and Canadian subsidiaries, voluntarily filed for relief under Chapter 11 of the Bankruptcy Code in the US Bankruptcy Court for the Eastern District of Virginia on September 18.
Moving into the holiday season, the retailer’s 1,600 Toys “R” Us and Babies “R” Us stores around the world will continue to operate along with its e-commerce sites.
The company announced that it will work with investors, debt holders and other creditors to restructure its US$5.2 billion in long-term debt, due between 2018 and 2021.
In light of the bankruptcy filing, Hasbro has updated its projection for Q4 2017, lowering its expectations to see gains of 4% to 7% over the same period last year.
In terms of category sales, Hasbro’s gaming section continues to lead growth. The segment saw a 22% increase in net revenue for a Q3 total of US$280.1 million, thanks in part to new social games including Speak Out and Fantastic Gymnastics (pictured).
The company’s total gaming category including Magic: The Gathering and Monopoly, which are included in Franchise Brands revenue was up 4% to US$424.8 million.
This momentum follows growth in the Gaming division in Q2 (with revenue increases of 6% to the tune of US$133.9 million) and Q1 (with a 43% jump in revenue to US$142.9 million).
Sales for Hasbro’s Franchise Brands grew by 7% to US$827.3 million, driven largely by Nerf, Transformers, My Little Pony and Monopoly. The company’s Emerging Brands division also saw an increase in revenue (up 9% to US$198.4 million) due to Baby Alive and Furreal Friends.
