Hasbro reported its Q1 sales and earnings on Monday, and although worldwide sales were up 3%, the company lost $4.9 million in the period, vs. a $3.7 million loss in the year ago period. Sales were higher, rising to $468.2 million vs. $454.9 million in the year-ago period; but losses were greater than anticipated by stock analysts.
North American sales were better than the worldwide numbers, with a 7% increase in sales. Positive trends included better sales on Magic: The Gathering in Q1; negative trends included an anticipated decline in sales of Star Wars toys. Hasbro is in a gap year between the drop-off in Star Wars toy sales due to the end of the movie run, and the beginning of its Marvel license (see 'Hasbro's Earnings Up, Shares Down'). Hasbro reported lower sales of CCGs in its international segment.
Mattel reported its Q1 results last week, and those weren't so great either. Although the company reported an increase in earnings to $30.2 million vs. $6.5 million in the year-ago period, that was due to a $57 million tax benefit. Mattel's operating loss was $32 million, vs. an operating profit of $5.5 million last year.
Mattel's entertainment segment, which includes games, puzzles, and some Mattel-branded toys, were down 14%, which the company attributed to declines in Yu-Gi-Oh! toys.