LONDON (ShareCast) - (Sharecast News) - Hasbro's second quarter profit fell as the US toymaker felt the effect of Toys 'R' Us's collapse, but earnings beat expectations.


Net earnings for the three months to 1 July fell to $60.3m (£46m), or 48 cents a share, from $67.7m, or 53 cents a share a share, a year earlier.

Analysts had on average expected earings of 29 cents a share, according to Reuters. Revenue fell 7% to $904.5m - beating the average forecast from analysts of $833m.

Hasbro said lower revenues reflected the liquidation of Toys 'R' Us, which closed its US and UK stores in April. The company, whose products include Monopoly, My Little Pony and Star Wars figures, was also hit by the need to clear excess retail inventory in Europe.

"2018 is unfolding as expected as our teams manage the liquidation of Toys"R"Us in many markets and address the rapidly evolving European retail landscape," said Brian Goldner, Hasbro's chairman and chief executive. "We are focused on moving beyond the near-term disruption of losing a major customer, with a clear path forward including new retailer activations to meet the consumer demand made available by the Toys 'R' Us departure."

International net revenue fell 11% to $380.4m led by Europe where net revenue dropped 16%. Hasbro has said it would get over the worst effects of the Toys 'R' Us collapse by the second half of 2018.

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