Hasbro Tumbles After Playskool and Easy-Bake Toys Lose FavorBy
Company’s second-quarter sales miss analysts’ projections
Hasbro looks to Star Wars to boost results in second half
Easy-Bake ovens aren’t as popular as they used to be.
Demand for Hasbro Inc.’s Easy-Bake, Playskool and Super Soaker brands declined in the second quarter, pushing sales below analysts’ estimates. While the company’s so-called Franchise products -- Transformers, Nerf and Monopoly, among others -- remained strong, the results sent shares down the most in almost nine years.
Regional weakness in places like Brazil and the U.K. contributed to tepid sales, Hasbro said. The company also saw just 1 percent growth from its Partner Brands, a group that includes Star Wars and Marvel products. But Hasbro expects the upcoming “Star Wars: The Last Jedi” film to help fuel results in the second half of the year.
The company is banking on a “robust and diverse entertainment slate” to boost sales, Chief Executive Officer Brian Goldner said in a statement.
Shares of Pawtucket, Rhode Island-based Hasbro closed down 9.4 percent to $105 Monday, the biggest one-day slide since October 2008. That trimmed its gains this year to 35 percent. Toy rival Mattel Inc. also dropped, falling 3.8 percent.
Sales amounted to $972.5 billion in the quarter, missing the $974.2 billion average of analysts’ projections. Still, profit exceeded estimates. Including an accounting benefit, earnings were 53 cents a share. Analysts predicted 45 cents.