Hasbro reported financial results for the first quarter 2018. Net revenues for the first quarter 2018 decreased 16 percent to $716.3 million versus $849.7 million in 2017. The decrease in revenues is the result of the liquidation of Toys “R” Us in the U.S. and the UK, along with uncertainty in its other operations, as well as retail inventory overhang, primarily in Europe.
Net loss for the first quarter 2018 was $112.5 million, or $0.90 per diluted share, compared to net earnings of $68.6 million, or $0.54 per diluted share, in 2017. This includes after-tax expenses of $61.4 million associated with Toys “R” Us, $15.7 million of severance costs associated with an acceleration of the company’s ongoing commercial organization transformation, and a net charge of $47.8 million related to U.S. tax reform.
Excluding the Non-GAAP adjustments, adjusted net earnings for the quarter were $12.4 million or $0.10 per diluted share. The first quarter 2018 was a 13-week period versus the first quarter 2017 which was a 14-week period.