All that finance mumbo jumbo aside, this decrease has hit the news because it was directly impacted by what was said at the latest shareholder meeting for the 3rd quarter, which just closed. Hasbro reported that sales were down due to "increasing price sensitivity for the average consumer". Basically it means that due to higher prices than last year, people bought less than they did last year.
Also, with people buying less, both Hasbro and retailers are beginning to have quite the inventory surplus issue. As a result, Hasbro says we should expect sales in the future.
Interestingly enough, Hasbro mentioned Transformers Earthspark as one of their main hopes to bouncing back. It will be a new show premiering in the 4th quarter, with a bunch of new toys on shelves, also coinciding with the holiday season.
Here are the full quotes below taken from the following CNBC article: https://www.cnbc.com/2022/10/18/hasbro- ... nings.html
And the graph below which no company wished they had was taken from Yahoo Finance today.
Hasbro reported third-quarter earnings Tuesday morning that fell short of analysts’ expectations as inflation weighed on consumers and the company contended with high levels of inventory.
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“As expected, the third quarter is our most difficult comparison and was further impacted by increasing price sensitivity for the average consumer,” CEO Chris Cocks said in an earnings release.
He expanded on this point in a conference call Tuesday morning, saying that promotions “have become increasingly important” in driving product sales. The company reported high inventory, which is currently afflicting retailers across the board. Hasbro said in an investor presentation that its inventory should help it meet holiday demand.
Shares were down more than 2% Tuesday morning, hitting a new 52-week low.
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Revenue for the period fell 15% compared to last year, dragged down by a 35% decrease in entertainment revenue. Its Wizards of the Coast unit, which includes “Dungeons & Dragons” and “Magic: The Gathering,” saw revenues decline 16%.
As prices for goods and supplies surge, the toy and game giant has increased prices for products like Nerf Blasters and My Little Pony figures.
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The company also pointed to several upcoming releases, including Marvel’s “Black Panther: Wakanda Forever” and the company’s own “Transformers: EarthSpark,” which the company will produce merchandise for during the fourth quarter and beyond.
With the holidays approaching, the toymaker said it plans to “sell through inventory” in the fourth quarter as it seeks to stick to its plan of focusing on fewer, bigger brands and more licensing.
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