America’s second largest toymaker Hasbro Inc’s quarterly revenue has been lower than expected. This is the second straight quarter of dip in the sales of its preschool products and games. The company’s shares saw a 3.6% dip on Nasdaq following the news on Monday. Hasbro, is best known for its toys such as My Little Pony and miniature action figures based on characters from Marvel Comics and films such as ‘Transformers’.
Sales of Hasbro in the U.S. and Canada too witnessed a 2% slide in the second quarter, as demand remained comparatively slack in the second quarter. Market experts said that this could be a result of children making a shift towards electronic versions of various games on tablets and smartphones.
Games comprise the second-largest business of Hasbro, and this segment also includes profitable card games such as Duel Masters. This segment reported a 12% fall in sales – the highest dip in three years.
Hasbro, however, anticipates that games such as Monopoly, Battle Masters, and Simon Swipe will help boost sales during the holiday season that will kick in over the next few months. During a conference call following the earnings, the company’s CEO Brian Goldner said that they have a range of compelling and innovative games targeted at various consumer groups. However, Hasbro said that it saw a surge in demand for its range of action toys thanks to the release of movies such as Spiderman and Transformers.
Last week, the company’s bigger rival Mattel Inc reported a 17% slide in the quarterly sales of its preschool product range - Fisher Price.