Source: Paramount Pictures

Hasbro Shares Decline After Toys Aimed at Boys Suffer Slowdown

  • 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.

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