Mattel, Hasbro stung by collapse of Toys R Us
Hasbro and Mattel posted steep quarterly sales declines across most of their toy portfolios as last year’s liquidation of Toys R Us disrupted the holiday season.
Mattel fared better during the fourth quarter, as overall sales fell 5 percent, helped by Barbie and Hot Wheels, its two largest brands. The company also reported better-than-expected earnings, thanks in part to cost cuts, boosting the stock by 20 percent in trading Friday.
Hasbro, meanwhile, posted a 13 percent drop in quarterly sales, as the maker of Nerf blasters and My Little Pony dolls was unable to recapture as much of the lost Toys R Us sales as it had anticipated. Hasbro shares fell 5 percent.
Despite Toys R Us’ liquidation completing midyear, the event cast a shadow across the rest of the year.
Toys sold at deep discounts during store-closing sales found their way to other retailers and online, eating into some of the holiday sales that manufacturers expected.
Hasbro, the maker of Nerf blasters, said Friday that sales declined 13 percent, as the company was unable to recapture as much of the lost Toys R Us sales as anticipated.