Hasbro (HAS 11.85%) is seeing a sustained increase in demand for its toys and game products as people look to entertain themselves at home.
The company announced on Wednesday that first-quarter sales fell 7% after accounting for currency exchange shifts, mainly because of reduced TV and film revenue. But its core gaming brands, which include Monopoly and Connect 4, jumped 30%.
"Families and friends connected through Hasbro's robust portfolio of face-to-face games, created with Play-Doh, and engaged in content and imaginative play with our brands," CEO Brian Goldner said in a press release.
Image source: Getty Images.
Hasbro sees a more significant negative impact from the COVID-19 pandemic ahead now that many of its retailing partners are temporarily closed and customer shopping traffic is down. But executives highlighted their robust cash generation and access to plenty of additional capital.
Hasbro is currently looking at ways to reduce costs while still positioning itself to meet the traditional demand spike around the holiday season.
"While the ultimate impact of COVID-19 will vary depending on how long it takes to reopen markets around the world," CFO Deborah Thomas explained, "we are currently seeing healthy demand for our products and content."
