The toy industry was a study in contrast in Friday’s pre-market trade as Hasbro Inc’s stock (NASDAQ:HAS) tumbled after a disappointing quarter due to the collapse of Toys “R” Us while rival Mattel Inc shares (NASDAQ:MAT) rocketed after reporting a robust fourth-quarter.
Hasbro's fourth-quarter results fell short of Wall Street’s estimates as it was hit hard during the holiday period by the closing of Toys "R" Us.
In the three months ended December 30, Hasbro earned $1.33 per share (adjusted) on sales of $1.39 billion. Analysts had called for Hasbro to see a profit of $1.67 per share on revenue of $1.52 billion.
“2018 was a very disruptive year, driven by the bankruptcy and liquidation of Toys “R” US across most of the world and a rapidly shifting consumer and retail landscape,” said Brian Goldner, Hasbro’s CEO in a statement.
“We were not, however, able to recapture as much of the Toys “R” Us business during the holiday period as we anticipated as the effect of its liquidated inventory in the market was more impactful than we and industry experts expected.
Barbie and Hot Wheels lift Mattel's numbers
In its latest quarter, toy maker Mattel reported better-than-expected earnings, helped by the sales of Barbie dolls and Hot Wheels cars.
The company reported net income of $14.9 million, or $0.04 per share, on revenue of $1.52 billion. The results crushed the forecasts of analysts who had called for the El Segundo, California-based company to post a loss of $0.16 per share on sales of $1.44 billion.
“In terms of regaining top line growth Barbie and Hot Wheels continued their momentum throughout the year,” said Ynon Kreiz, CEO of Mattel, speaking in a conference call late Thursday. “We executed well in our two largest regions North America and Europe and maintained our strength in Latin America and global emerging markets excluding China.”
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