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Hasbro Shares Take Major Beating As Easy-Bake Oven Sales Cool Off

Hasbro games. Photo by Gustavo Caballero—WireImage via Getty Images

Hasbro has suffered its largest share drop in nearly two years on Monday after the toymaker said sales of its Easy-Bake, Playskool and Super Soaker brands plummeted in the second quarter.

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%.

Shares fell 8.5% to $105 on Monday, their worse drop since October 2015, according to Bloomberg data. Mattel mat shares also dipped, slipping 5%.

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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.

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