(Reuters) – Mattel and Hasbro are bracing for a slowdown in toy sales ahead of the crucial holiday season as consumers cut back on non-essential spending in the face of inflation.
Hasbro, maker of Monopoly, said it expected a 13% to 15% drop in revenue for the year, compared with a 3% to 6% drop previously.
Its third-quarter results also missed expectations. The turnover reached 1.50 billion dollars, against 1.64 billion expected by analyses. Revenues from its main activity, toys, plunged 18%. The stock lost 12% before the opening of Wall Street.
Mattel shares also fell 10%, as the group warned that it expected a slowdown in demand before the holidays, even if third-quarter results benefited from the success of the “Barbie” film. Mattel expects 125 million dollars (around 119 million euros) in revenue from the film over the entire year.
“We are operating in a difficult macroeconomic environment, with increased volatility which could have an impact on consumer demand,” however warned Mattel CFO Anthony DiSilvestro during a conference call.
Demand in the toy industry has fallen since the peak linked to the Covid-19 pandemic, as consumers forgo leisure spending as they trade off rising prices.
(Reporting by Savyata Mishra in Bangalore, Stéphanie Hamel, editing by Jean-Stéphane Brosse)
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