Hasbro Inc. (NASDAQ:HAS) Q3 2020 Earnings Conference Call - Final Transcript

Oct 26, 2020 • 08:30 am ET


Hasbro Inc. (NASDAQ:HAS) Q3 2020 Earnings Conference Call - Final Transcript


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Good morning, and welcome to the Hasbro Third Quarter 2020 Earnings Conference Call. [Operator Instructions]

At this time, I'd like to turn the call over to Ms. Debbie Hancock, Vice President of Investor Relations. Please go ahead.

Debbie Hancock

Thank you, and good morning, everyone. Joining me today are Brian Goldner, Hasbro's Chairman and Chief Executive Officer; and Deb Thomas, Hasbro's Chief Financial Officer. Today, we will begin with Brian and Deb providing commentary on the company's performance, then we will take your questions.

Our earnings release and presentation slides for today's call are posted on our Investor website. The press release and presentation include, information regarding non-GAAP adjustments and non-GAAP financial measures. Our call today will discuss certain adjusted measures, which exclude these non-GAAP adjustments. A reconciliation of GAAP to non-GAAP measures is included in the press release and presentation. Please note that whenever we discuss earnings per share or EPS, we are referring to earnings per diluted share.

Before we begin, I would like to remind you that during this call and the question-and-answer session that follows, members of Hasbro management may make forward-looking statements concerning management's expectations, goals, objectives and similar matters. There are many factors that could cause actual results or events to differ materially from the anticipated results or other expectations expressed in these forward-looking statements. These factors include those set forth in our annual report on Form 10-K, our most recent 10-Q, in today's press release and in our other public disclosures. We undertake no obligation to update any forward-looking statements made today to reflect events or circumstances occurring after the date of this call.

I would now like to introduce Brian Goldner. Brian?

Brian D. Goldner

Thank you, Debbie. Good morning, everyone, and thank you for joining us today. The global Hasbro team did an excellent job delivering a strong third quarter with revenues growth in toys, games and digital initiatives, while live-action production begins to return. Consumer demand remained strong. Global point-of-sale for Hasbro brands was up mid-single-digits, including double-digit gains in the U.S., U.K. and Australia, among others. Overall, point-of-sale grew despite declines in Latin America and Asia and some out-of-stocks in the games category.

Nearly all stores globally have been opened and operating with Latin America experiencing the most restrictions. Foot traffic in stores remains meaningful lower, but ecomm continues to deliver with 50% growth globally in the quarter. We also benefited from the reopening of toy specialty retailers in Europe. Production at our third-party factories is up and running and supply is largely in line with demand where demand remains above trend we are working to catch-up.

The restarting of live-action entertainment is gradually occurring with some of our larger productions beginning late in the third quarter. As a result, deliveries were low, but are set to improve in the fourth quarter, and some revenue will move into 2021. MAGIC: THE GATHERING delivered strong third quarter results and revenue was up double-digits for the first nine months of the year. The release of Double Masters