Toys R Us' Chapter 11 bankruptcy filing won't stop Hasbro (NASDAQ: HAS) from selling its toys at Toys R Us stores this holiday season, according to one of the men at the top of the toy chain.
Hasbro CEO Brian Goldner told the media on Monday, "We didn't know that it was going to happen, and obviously, when you first hear about this you take a few days off. We wanted to understand exactly what the impact might be.”
While Hasbro's quarterly report beat Wall Street estimates, shares of the toy maker fell over 8% intraday on muted guidance for holiday sales related to Toys R Us' bankruptcy filing.
On Hasbro's conference call, Goldner called the near-term effect of the Toys R Us news "disruptive" and told listeners that Hasbro had paused shipments while the company waited for clarity on the toy seller's situation.
"It's taken us a month to get a plan together and a new agreement with them which we've signed just a few days ago," Goldner explained.
The CEO added that Hasbro has taken steps to broaden its end markets so that situations like these don't stymie the toy maker's sales prospects in the long run.
Goldner also said that Hasbro's management has been working to alter old contracts with online sellers, improve price points for their products and innovate new toy lines to prevent single-handed hits to sales like Toys R Us'.
Hasbro shares galloped $2.81, or 3.1% to $92.56 early Tuesday afternoon.
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