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The board game Monopoly by toymaker Hasbro at a toy store in New York City.
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Hasbro said Wednesday it expects its second quarter to take a hit from the coronavirus pandemic, but it expects to be ready for the holiday season.
The comments come as the toymaker reported its first-quarter earnings, telling investors that it has a solid financial footing and is cutting costs as it prepares to meet the seasonal demand that comes in the second half of the year.
The coronavirus pandemic has led to store closures due to country-wide restrictions on social interactions as well as global production shutdowns. Hasbro noted that it ended the first quarter with $1.2 billion in cash and has a revolving credit facility of $1.5 billion available, should it be needed.
“Hasbro is operating from a solid financial position with substantial liquidity available in both cash on hand and a revolving credit facility,” Deborah Thomas, Hasbro’s chief financial officer, said in a statement.
The company swung to a net loss of $69.6 million, or 51 cents a share, from net income of $26.7 million, or 21 cents a share, in the year-ago period.
Excluding non-recurring items, such as eOne acquisition-related expenses, adjusted earnings per share came to 57 cents, below the consensus of 58 cents, according to data from Refinitiv.
Revenue rose to $1.11 billion from $732.5 million but came up shy of the Refinitiv consensus of $1.14 billion.
Still demand for family games has spiked during the quarter and into April, the company said.
“During the quarter, families and friends connected through Hasbro’s robust portfolio of face-to-face games, created with Play-Doh and engaged in content and imaginative play with our brands and entertainment properties,” Brian Goldner, Hasbro’s chairman and chief executive officer, said.
Hasbro’s gaming category, including Magic: The Gathering, Monopoly and Hasbro Gaming, grew 40%, the company said.
