There is indeed more than meets the eye. In a report just out by Forbes.com, it appears things are real bad at Hasbro. Following their frouth quarter 2010 under-performance. The first quarter 2011 reports of a 71% drop in profit is shocking. Who would believe things are this bad at the arguably #1 toy retailer in the world? Needless to say, all hopes are now riding on the Success of the Transformers: Dark of the Moon and Marvel movies coming this summer.
It is kind of perplexing to understand how this happened. Hasbro admitted they gambled long on board game sales and other initiatives that didn't pan out over the holidays. Traditionally a slow time of year for retails sales. Hasbro needed to show they could hold on and even improve in the first quarter of this year. A drop of 71% is not good to say the least. Hasbro stock has lost 2.5% of their stock valuation on the news at the time of this writing.
"Toy producer Hasbro reported a 71% plunge in first quarter earnings today. Net income fell to $17.2 million, or $0.12 per share, from $58.9 million, or $0.40 per share, in last year's first quarter..."
All eyes will be on Hasbro for not just ticket sales, but toy sales as well. Hasbro has stated they are looking towards the release of Transformers Dark of the Moon, and the Marvel films Captain America and Thor, that will play in theaters this summer. From Hasbro CEO Brian Goldner:
"...the company is building momentum into the release of another Transformers movie and two Marvel films for which it will sell related toys."
I have to be candid and say much of what we are seeing is the well known symptoms of the sequel. Properties that have seen mass popularity, enjoy a limited life span. When they fail, they fail just as dramatically as they take off. I hope I am wrong, but Hasbro may have passed it's prime.
Read the full news story now at
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