FINANCIAL CONTAGION
Toy maker Hasbro tumbles in wake of Toys ‘R’ Us collapse
New York — The demise of Toys "R" Us took a toll on Hasbro, which posted worse than expected results in the first quarter. Hasbro posted declining sales in all business areas in the quarter, sending shares down as much as 9.1% in early trading. The toy maker said the drop was a result of the Toys "R" Us liquidation, as well as "uncertainty" in some operations and excess inventory in Europe. "We are working to put the near-term disruption from Toys "R" Us behind us," CEO Brian Goldner said. The retailer, one of Hasbro’s largest customers, filed for bankruptcy in September, had a terrible fourth quarter and then announced the liquidation of several divisions, including the US. This has presented another hurdle for toy makers that were already dealing with slowing growth and concerns that the success of making so many products based off an ever-growing slate of kids’ entertainment is waning. The Toys "R" Us effect could be seen in Hasbro ’s results. In North America, sales sank 19%. Re...
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