Over the years, toy-making company Hasbro Inc. (NASDAQ: HAS) found its success through duplicating popular cartoon characters and is rewarded with overload demand for their “Frozen” dolls along with extravagant action figures from movies like “Star Wars”. Hasbro’s FurReal Friends Starlily was also featured on Fortune’s must own toys ranking at 3rd.
Despite reported to have a better-than-expected quarterly profit and revenue, the company’s earnings took a slid down the graph. The tactic which Hasbro excels at (toys targeting boys) accounts for 40% of Hasbro’s total revenue. However, that has dropped 4% in sale in the second quarter from around 24% to 32% in the prior three quarters.
The company reported $0.41 in earnings per share on 878.9 million in revenue. According to Thomson Reuters, it is estimated at $0.39 in earnings per share on revenue of $858.97M. Also in the same period of last year, the company posted an earnings per share of $0.33 and revenue of $797.66 million.
The No.2 U.S. toymaker’s share fell as short as much as 7.21% in the midmorning trade on Monday. Few indications for the drop of earnings may be viewed on the sales on the toys based on the movie, “Jurassic World”, which plummeted dramatically with persistent poor reviews on the film.
Due to Britain’s sudden exit from the European Union, it caused some near-term uncertainty though Hasbro has yet to be affected by the vote. Chief Executive Brian Goldner said on the conference call, “We have positive momentum in both the UK and Europe heading into the second half of the year.”
Hasbro expects to see a brighter light when they start to ship toys based on “Rogue One: A Star Wars Story” in the current quarter ahead of the December release of the next film in the franchise.