NEW YORK, NY / ACCESSWIRE / October 24, 2017 / Shares of Hasbro came crumbling down at the start of the trading after announcing that there would be a sales growth effect due to Toys "R" Us declaring bankruptcy. The news of the company's outlook sent rival shares of Mattel down as well.
RDI Initiates Coverage on:
Hasbro, Inc.
http://www.rdinvesting.com/report/?ticker=HAS
Mattel, Inc.
http://www.rdinvesting.com/report/?ticker=MAT
Hasbro, Inc. shares closed down 8.60% yesterday despite announcing third quarter financial results that beat the Street's estimates. It was the numbers looking forward that had traders disappointed. Despite reporting revenues that saw a 7% growth and earnings that saw a 3% growth, it was Hasbro's lowered fourth-quarter guidance that sent shares down. The company's CEO Brian Goldner commented, "As a result of the Toys "R" Us bankruptcy filing in the U.S. and Canada, there was a negative impact on our quarterly revenues and operating profit." Hasbro sells about 9% of its total inventory at Toys "R" Us so it's no surprise Wall Street didn't take the news well. Even though the company lowered its expectations, Hasbro still forecast a growth of 4 to 7% in revenues. This may seem strong, but in the last holiday quarter, Hasbro had projected a gain of nearly 12%. CFO Deborah Thomas also commented and said, "We are well positioned for the holiday, including good quality inventory at Hasbro and at retail, backed by strong consumer momentum. We continue to work closely with Toys"R" Us as we head into the holiday period."
Access RDI's Hasbro, Inc. Research Report at:
http://www.rdinvesting.com/report/?ticker=HAS
Mattel, Inc. shares closed down 3.19% on Monday with almost 31 million shares traded. It was a discouraging day for the toy maker after Hasbro warned that the holiday period would have a bad effect on its sales growth because of key retailer Toys "R" Us declaring bankruptcy. Rival Mattel couldn't help but feel the burn of the news. Mattel also recently shelved the Aristotle, a smart speaker and baby monitor that was specifically designed with kids in mind. The multi-functional speaker could be programmed to tell bed-time stories and teach the ABC's, as well as live-stream encrypted video to a smartphone. As good as it sounded, child advocates were pissed off and sent a letter to Mattel CEO Margaret Georgiadis that stated, "Children shouldn't be encouraged to form bonds and friendships with data-collecting devices." Mattel announced that it would "not to bring Aristotle to the marketplace as part of an ongoing effort to deliver the best possible connected product experience to the consumer" and that the Aristotle did not "fully align with Mattel's new technology strategy."
Access RDI's Mattel, Inc. Research Report at:
http://www.rdinvesting.com/report/?ticker=MAT
Our Actionable Research on Hasbro, Inc. (NASDAQ: HAS) and Mattel, Inc. (NASDAQ: MAT) can be downloaded free of charge at Research Driven Investing.
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