Hasbro’s net revenues for Q2 ended July 1 decreased 7% to $904.5. The company said the revenue decline reflects “the liquidation of Toys’R’Us in the U.S. and many other global markets. In addition, revenues declined internationally, most notably in Europe, as a result of managing retail inventory amid a rapidly evolving retail landscape.”

Net earnings for the second quarter 2018 declined 10.1% to $60.3 million.

“2018 is unfolding as expected as our teams manage the liquidation of Toys’R’Us in many markets and address the rapidly evolving European retail landscape,” said Chairman-CEO Brian Goldner. “Consumer takeaway is up for our brands, and we further strengthened our brand portfolio through the acquisition of Power Rangers. We are focused on moving beyond the near-term disruption of losing a major customer, with a clear path forward including new retailer activations to meet the consumer demand made available by the Toys ‘R’ Us departure.”

Net revenues in the company’s Entertainment and Licensing Segment jumped 26% in the quarter to $64.7 million, while operating income in that business increased 64% to $18.6 million.