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Hasbro CEO Tells Cramer Toys R Us 'Disruption' Is Over

Hasbro CEO Tells Cramer Toys R Us 'Disruption' Is Over

Toymaker Hasbro, Inc. (NASDAQ: HAS) reported Friday with fourth-quarter results that were negatively impacted by the Toys R Us liquidation. During the quarter, net revenue fell 13 percent from last year to $1.39 billion, while full-year revenue fell 12 percent from $4.58 billion.

What Happened

Any persisting issues from the Toys R Us "disruption" will likely come to an end in the first quarter of 2019, Hasbro Chairman and CEO Brian Goldner told CNBC's Jim Cramer in a Monday interview. Q1 will likely mark the last time Toys R Us will be mentioned as the company annualizes the last quarter where it shipped toys to the now-bankrupted retailer, the CEO said. 

Why It's Important

This year should bring an expansion of Hasbro's operating profit margin on the basis of new initiatives and innovation, along with an "incredible entertainment slate" led by its own brands, the executive said. The "disruption and an interruption" to growth seen in 2018 is a thing of the past, Goldner said, adding that the company can return to the golden era of 2012-2017, when revenue grew by an average of 5 percent.

What's Next

Hasbro will be introducing "more proprietary innovation" in the fall season, the CEO said. While this is a bit later than usual, the company decided to hold off to avoid releasing new products — especially in the digital gaming arena — "too early," he said. 

Hasbro expects to show investors a mid-single digit growth rate over time, Goldner said, along with double-digit earnings growth led by an "amazing array of new initiatives coming ... and movies from 'Avengers' to a new 'Star Wars' and of course 'Frozen.'" 

Related Links:

The Toy Story: After Weak Holidays, Hasbro Set for Rebound, Mattel Reliant on Barbie

UBS: Increasingly, Toys 'R' Sold Online


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