Hasbro sales slip as families tire of playing with inflation
Hasbro’s profit & sales fell in the third quarter because families were more careful about how much they spent on toys, with inflation reducing budgets.
” The third quarter was our most difficult and was further impacted due to increasing price sensitivity of the average consumer,” stated CEO Chris Cocks.
Revenues for Pawtucket, Rhode Island’s company fell to $1. 68 billion, down 15% from last year’s third quarter, and Hasbro said the strong dollar knocked 3% off of quarterly revenue, or almost $54 million.
Hasbro Inc. made $129.2million, or 93cents per share in the quarter. This is 49% less than the same period last. Earnings were $1 after excluding amortization and one-time costs. 42 per Share, which is far below the $1. According to Zacks Investment Research, 53 Wall Street was also hit by a 26% decline in film and TV revenue.
The toymaker also suffered a 26% drop in film and TV revenue compared to last year. This was due to the streaming release of “Come from Away” (Finch .”
). However, families are reducing their spending as the prices for basic necessities like food housing and food is rising. The pullback occurs at the holiday season, which is a time when toy companies and other retailers depend on for significant sales. It remains to see if consumers will continue to spend as freely on gifts this year or wait for sales.
But, there is increasing evidence that Americans are cutting back on spending as inflation bites. The U.S. reported that retail sales were flat in September and August, but that prices are rising means people are paying more to get less. Small businesses are already planning for slimmer holiday sales in the coming year.
Shares fell almost 2% Tuesday.
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