Weak Holiday Sales from Hasbro Are a Surprise
After NPD reported solid toy sales during December, we thought the holiday season might be relatively strong for the major toymakers—including Lego, Hasbro (click ticker for report: ), and Mattel (click ticker for report: ). However, Hasbro announced last week that its fourth quarter revenue will be approximately $1.3 billion, below the consensus expectation of $1.4 billion. Earnings, net of restructuring charges, will be $2.73-$2.75 per share, well below the consensus estimate of $2.85 per share. We won’t know until the firm announces its results in February what caused the weakness, but we like the firm’s decision to reduce annual operating expenses by $100 million over the next three years. Since December seemed like a relatively strong month for the … Read more