October 22, 2019 / 11:00 AM / a month ago

UPDATE 1-Hasbro misses profit estimates as costs jump on tariff threat

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Oct 22 (Reuters) - Hasbro Inc fell short of Wall Street estimates for quarterly profit on Tuesday, as the threat of tariffs on toys imported from China ramped up shipping and warehousing costs, sending its shares down 7%.

The company also faced sluggish demand for its toys, as customers switch to video games or games on their tablets, phones and computers from traditional toys and board games.

"The threat and enactment of tariffs reduced revenues in the third quarter and increased expenses to deliver product to retail," Chief Executive Officer Brian Goldner said in a statement.

Net income fell to $212.9 million, or $1.67 per share, in the three months ended Sept. 29, from $263.9 million, or $2.06 per share, a year earlier.

Excluding certain items, the company earned $1.84 per share, much below analysts' estimate of $2.21 per share.

Net revenue rose marginally to $1.58 billion, but missed the average analyst estimate of $1.72 billion, according to IBES data from Refinitiv.

Revenue from franchise brands, its largest business, slipped 8.7% in the quarter, hurt by weak demand for its toys such as Play Doh and Baby Alive, among others.

Reporting by Praveen Paramasivam in Bengaluru; Editing by Sriraj Kalluvila

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