And Toys R Us's bankruptcy drama continues. First quarter earning are out for Hasbro and Mattel and they are pretty much what everyone expected them to be after Toys R Us filed for Chapter 7 Bankruptcy (Liquidation).
And you can find out all the pertinent information after the break!
CNN reports Hasbro's overall sales plummeted 16% because of this. Again this is not a surprise. Toys R Us accounted for 10% of Hasbro's overall sales. Combine TRUs liquidation with a weaker than usual Holiday Toy Shopping season and this was the predicted outcome. After a rocky First Quarter, Hasbro is looking to put the Toys R Us liquidation behind them and focus on retailers who view TRU's demise as "an opportunity in a key consumer category."
Said retailers are more than likely Walmart, Target, and Amazon. Without Toys R Us, those 3 are the biggest toy stores in the United States.
At the other major American Toy Company, CNBC reports Mattel's overall sales drop for Quarter one was a surprising 4%. Mattel is crediting the lack of an overall sales drop with the strong sales of Barbie (up 24% from 2017) and Hot Wheels (up 15% from 2017).
This does not mean everything is hunky dory for Mattel. Revenue is still down $27.2 million from 2017. Analysts were expecting the loss to be about $41.2 million. But Mattel is viewing this the beginning of "great momentum." So who knows what is going to happen on that end.
My money is still on Hasbro buying Mattel outright since even with the 16% drop in sales, Hasbro Stock is currently worth $87.36 per share to Mattel's $14.17 per share.
Be sure to discuss in the comments folks.
Twitter: The Illustrious Q
