Hasbro’s Loss Widens on Restructuring Charges

Although the toy making company, Hasbro Inc. has improved its revenue for three of the four product categories, its first quarter losses have increased.  Hasbro Inc. relies on brand innovation for its growth in revenue for its Games, Preschool, and Girls categories. The largest category of the company, boy’s products have dropped by 20%, which can account for such a loss in the first quarter. A factor that causes the decrease in sales for boys’ products that include Transformers and G.I. Joe toys is due to popularity of mobile-device play.  For the first quarter, they have already reported a loss of $6.67 million, or five cents a share, which is an increase of three million since last year where they reported $2.58 million.

I believe that this overall affects the market in which children’s toys will be affected with losses and a decrease in the sales of their toy products. Technology has a large impact not only on companies in which adults are targeted, but now there is an increasing trend in the usage of mobile devices for children. Young children nowadays are spending more time on their parent’s tablets or phones rather than playing with traditional toys. The rival toy maker Mattel Inc., unlike Hasbro has seen higher profits with an increase demand in certain toy brands such as American Girl and Monster High dolls. This proves that toy companies will have to ensure that their company will target their audience in order for their company to survive in the market.

Written by: Samantha Chin

Source: The Wall Street Journal

http://online.wsj.com/article/SB10001424127887324874204578438381315004190.html?mod=WSJ_business_whatsNews

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