And so it begins— Yesterday’s news of Toys ‘R Us “facing its finality” sent immediate shockwaves throughout the toy industry, reflected most clearly by a corresponding drop in both Hasbro and Mattel’s share values. Hasbro survived yesterday’s economic “ripple effects” better than Mattel, dropping -2.06%, while Mattel fell a whopping -7.11%—in just 1 day! According to MarketWatch:
“Mattel’s stock has tumbled 36.6% over the past 12 months and Hasbro shares have lost 4.1%, while the S&P has gained 15.8%.”
Bottom Line: Ouch. Anyway we look at it, while the economy and stock markets continue to perform strongly, the toy industry is now officially headed in the other direction. Fortunately for both Hasbro and Mattel, the stock market closes today at 1PM, hopefully shielding them from any further losses—at least until Monday. Stay tuned. We may need to revisit this topic frequently.