Demand dips for Hasbro’s classic toys
PAWTUCKET, R.I. — Demand for Hasbro Inc.’s EasyBake oven, 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 21 months.
Regional weakness in places such as 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.
The company is banking on a “robust and diverse entertainment slate” to improve sales, Chief Executive Officer Brian Goldner said in a statement.
Shares of Pawtucket, R.I.-based Hasbro fell $10.95, or 9.4 percent, to close Monday at $105. They had gained 49 percent this year through the end of last week.
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.