A Real Pain in the Wallet—Hasbro and Mattel’s Stock Values Take Immediate Hit After News of Toys ‘R Us’ Imminent Liquidation Announced

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Stop the Madness— It’s like dominos—If Toys ‘R Us fails or “falls down,” then toy manufacturers too, may begin to fall—like dominos. And if that actually happens, we’ll all have to start buying those wooden “educational toys” peddled at local farmer’s markets. Oh, nooooo!!! (Graphic: dreamtime)

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: 

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“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.

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One thought on “A Real Pain in the Wallet—Hasbro and Mattel’s Stock Values Take Immediate Hit After News of Toys ‘R Us’ Imminent Liquidation Announced

  1. Daniel Edwards says:

    Interesting story on NPR’s Marketplace last Friday regarding the Toys R Us downturn:

    https://www.marketplace.org/2018/03/06/business/toys-r-us-and-how-retail-downturn-story-about-debt

    I thought the most interesting part was explaining the leveraged buyout:

    “And that’s the thing about leveraged buyout deals. They leave companies with a lot of debt and almost no cash. If something goes wrong in the industry, it’s hard to survive.”

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