A day after Mattel revealed declines in revenues, fellow toy company Hasbro has reported a fall in earnings to $19.7 million from $37.5 million for the first quarter.
The firm recorded net revenues of $621.3 million compared to $704.2 million a year ago. The revenue decrease in constant dollars was six per cent, excluding the negative $40.2 million impact of foreign exchange.
However, Hasbro is looking at a bumper summer - it has toy ranges for three major film releases, Transformers: Revenge of the Fallen, GI Joe: Rise of Cobra and Marvel's X-Men Origins: Wolverine.
"As we communicated earlier this year, we expected revenues to decline in the first quarter due to economic challenges, the impact of foreign exchange and retailers reducing inventory levels," stated Brian Goldner, president and CEO at Hasbro.
"To drive momentum in our business in the coming quarters, we have new product initiatives across each of our major product categories including pre-school, games, girls, and boys, including the highly anticipated theatrical releases of Transformers: Revenge of the Fallen, GI Joe: Rise of Cobra and Marvel's X-Men Origins: Wolverine."
US and Canada segment net revenues were $404.5 million (2008: $428.5 million), with growth in Star Wars, Playskool, Nerf and board games offsetting declines from Littlest Pet Shop, Transformers and Marvel brands.
International segment net revenues were $189.2 million (2008: $248.3 million). The revenues include a negative foreign exchange impact of approximately $36.1 million.