Hasbro blames Toys 'R' Us as sales sink

By Nivedita Balu

(Reuters) - Hasbro Inc reported a bigger-than-expected drop in quarterly revenue on Monday, blaming the liquidation of Toys 'R' Us and unsold toy inventory in Europe for a $100 million shortfall in revenue.

Shares of the company fell nearly 5 percent to $78.80 before the bell and were set to open at their lowest since December 2016 as the company also fell 23 cents per share short of analysts' expectations on profit.

The toy industry has been hit by the bankruptcy of retailer and major customer Toys 'R' Us' and its unexpected liquidation, forcing Hasbro, rival Mattel and other toy makers to find other outlets for sales.

Hasbro had warned in February that much of the Toys 'R' Us impact would be felt in the first two quarters of the year.

"We are working to put the near-term disruption from Toys'R' Us behind us. Our global retailers view this as an opportunity in a key consumer category and are partnering with Hasbro to develop growth plans for our brands," Chief Executive Officer Brian Goldner said.

Net loss attributable to Hasbro was $112.5 million, or 90 cents per share, in the first quarter ended April 1, compared with a profit of $68.6 million, or 54 cents per share, a year earlier.

Excluding certain items, the company earned 10 cents per share. Analysts on average had expected 33 cents per share, according to Thomson Reuters I/B/E/S.

The company's revenue fell 16 percent to $716.3 million. Analysts on average were expecting revenue of $814 million.

(Reporting by Aishwarya Venugopal and Nivedita Balu in Bengaluru; Editing by Anil D'Silva)