Hasbro revenue plunges despite strong demand
Hasbro could not capitalize on strong demand for its board games like "Scrabble" as families stayed home amid the pandemic. The toy maker behind brands like "Nerf" and "Monopoly" reported Monday that its quarterly revenue plunged nearly 13%, and it swung to a loss from a profit.
That's because the health crisis forced it to shut down production in the U.S., Ireland and India. The supply shortages that ensued caused revenue to decline 30% in the U.S. and Canada. Temporary store closures and lower retail inventory also hurt.
What's more, Hasbro took a hit from the shutdown of TV and movie production at the company it acquired last year, Entertainment One.
But CEO Brian Goldner said he expects the outlook to improve as stores reopen and entertainment production resumes.
Hasbro's rival, Mattel, also saw revenue drop despite strong demand, but its top line, unlike Hasbro's, beat analysts expectations.
Hasbro shares, which have lost more than a quarter of their value this year, fell as much as 8% in early trading Monday.
