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Analyst Confident Hasbro will Recover Revenue from Toys “R” Us Bankruptcy

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The Toys “R” Us bankruptcy has been rough on Hasbro’s revenue, but analysts MKM Partners have reported a positive view of Hasbro’s growth for the coming year. Hasbro management told MKN that regaining the lost revenue from the Toy “R” Us bankruptcy will take time, but the pressures should lessen in 2019. MKM felt the street estimates for Hasbro were low given the opportunity for revenue growth in 2019 and 2020.

To accomplish growth Hasbro said it is expanding its retail presence of youth-orientated games and gadgets into new segments like Five Below, Ross, Walgreens, Wegmens, GameStop, J.C. Penney, Costco and Dick’s Sporting Goods. According to MKM, Hasbro added 10,000 new retail doors this year, without any change in cost structures.

MKM said there will be upward of $500 million for incremental revenue opportunities next year for Hasbro. This revenue target should primarily be derived from: Frozen, Star Wars, Disney live-action movie tie-ins, Marvel and Magic: The Gathering Arena, Hasbro’s strategy card game.

Source: https://www.barrons.com/articles/analysts-takes-on-hasbro-stoneco-and-foot-locker-1543021200