Toy wars - Hasbro vs Mattel
The Hustle reported that as Toys ‘R’ Us readies to officially put the nail in the toy chest, US toymakers like Hasbro continue to struggle. After Toys ‘R’ Us blew up in Q4, Hasbro’s projected holiday sales dropped 13% as brands like Nerf and My Little Pony underperformed. But Mattel, on the other hand, is killing it. Sales dropped 5%, but better-than-expected results from its Barbie and Hot Wheels brands caused the company’s stock price to jump 23%. Hasbro and Mattel have very different business models. Nerf and My Little Pony are a small fraction of Hasbro’s bread and butter. Its financial success relies mainly on Disney’s movie slate, and no Star Wars or Disney princess movies were released during the 2018 holiday season. In contrast, Mattel relies on its core franchises to bring home the bacon. Luckily for Hasbro, the Disney toy closet is jam-full in 2019.