Hasbro Shares Take Major Beating As Easy-Bake Oven Sales Cool Off
The Pawtucket, Rhode Island-based company said that quarterly sales in what it calls its “emerging brands” fell 14% to $62.9 million, dampening what was otherwise a stellar quarter, with revenue in Hasbro’s franchise brands like Transformers, Nerf and Monopoly rising 21% to $545.7 million. The company also saw sluggishness in its group that includes Star Wars and Marvel products, with sales up only 1%.
Hasbro also said that weak sales in Brazil and Great Britain has weighed on sales.
Still, many analysts felt the sell-off was over done. For one thing, the upcoming “Star Wars: The Last Jedi” film is expected to help fuel results in the second half of the year. And Jefferies said in a research note after the company said toy industry sales were up 4%, that Hasbro’s sales increase means it “is taking meaningful share” of the toy industry. What’s more, with shares up 49% for the year through before Monday’s earnings report, Hasbro was due for a sell-off.