The bankruptcy of Toys 'R' Us weakened Hasbro's forecasts for the holiday season. But as Fred Katayama reports, the retailer released strong earnings.
Monopoly and My Little Pony still have it. Strong demand for the classics helped Hasbro beat profit and revenue estimates in the third quarter. But the bankruptcy of Toys'R'Us weakened the toy maker's forecasts for the holiday season. Hasbro was selling about nine percent of its total inventory through the giant retailer. The surprise bankruptcy filing last month left Hasbro exposed to as much as $60 million in unsecured claims for payment. TTPM's Jim Silver. (SOUNDBITE) JIM SILVER, CEO, EDITOR-IN-CHIEF, TTPM (ENGLISH) SAYING: "Toys'R'Us sales have been soft during the year. And their bankruptcy effected the whole business. You know, a lot of smaller mid-sized manufacturers were hurt a little bit more. But overall most manufacturers are going to be down a little bit because of Toys'R'Us sales." The weak forecast holiday season sent Hasbro shares down about ten percent on Monday.