Hasbro Shares Decline After Toys Aimed at Boys Suffer Slowdownby
Lack of ‘Transformers’ movie takes toll on company’s sales
Boys toys had surged 24 percent in the previous quarter
Where’s Optimus Prime when you need him? Hasbro Inc. suffered its worst stock decline in nine months after reporting a slowdown in growth of boy-oriented toys, hurt in part by the lack of a new “Transformers” film.
Sales generated by Hasbro’s Boys products -- its biggest category -- grew just 4.3 percent in the second quarter, the Pawtucket, Rhode Island-based company said on Monday. That compared with 24 percent growth in the first quarter.
A gap in the “Transformers” movie series is taking a toll on related toys, Chief Executive Officer Brian Goldner said on a conference call. The next installment in the sci-fi franchise is due next year. The company also had the benefit of the “Jurassic World” movie a year ago, making the latest sales comparisons tougher.
“The slowdown in Boys is somewhat worrisome,” Trevor Young, an analyst at Jefferies LLC, said in a note.
Hasbro fell as much as 7 percent to $79.51 in New York, the biggest intraday drop since Oct. 19. The stock had been up 27 percent this year through the end of last week.