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Hasbro Tumbles After Results Fall Short of Rival Mattel’s

(Bloomberg) — Hasbro Inc. fell the most since July after reporting third-quarter sales that disappointed investors in contrast with rival Mattel Inc.’s results last week.Hasbro, the largest U.S. toymaker, said Monday that revenue fell 4% on a pro forma basis to $1.78 billion. That beat analysts’ predictions of $1.74 billion. Excluding Entertainment One, which Hasbro acquired earlier this year, revenue rose 13%. Adjusted profit was $1.88 a share, topping estimates of $1.60, led by its games segment.Still, Hasbro shares fell as much as 7.6% to $85 in New York trading as traders focused on the comparison with Mattel. Mattel slipped as much as 1.6%.While both companies have said parents are flocking to familiar products to entertain kids stuck at home during the pandemic, Hasbro relies more than Mattel on the kind of movie tie-in toys that have been absent with major film releases delayed. Hasbro said revenue in that segment, which it calls partner brands, fell 4%.Pawtucket, Rhode Island-based Hasbro said point-of-sale revenue grew at a mid-single-digits percentage rate, underperforming Mattel’s double-digit growth in that area. On a conference call, Hasbro Chief Executive Officer Brian Goldner attributed the muted revenue rise to sharp declines in Latin America, which countered double-digit growth in North America.Hasbro didn’t provide detailed commentary on fourth-quarter or full-year trends, saying only that it expects a “good holiday season.” Mattel specifically forecast higher fourth-quarter sales.Hasbro shares were down 13% this year through last week, mostly because of weaker sales in the first half of the year. Mattel was up 4.5%, in part thanks to a big gain on Oct. 23 after its earnings report the previous evening.(Updates with shares in third paragraph, CEO comment in fifth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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