Toymaker Hasbro Inc reported lower-than-expected quarterly revenue, hurt by a strong dollar and lower sales of its games and toys for girls.
Shares of the company, which makes Monopoly board game and My Little Pony toys, fell as much as 8.2%Â on Monday.
Toymakers including Hasbro and Barbie doll maker Mattel Inc have seen declining sales of toys for girls as children increasingly opt for gadgets and tablets.
Revenue in Hasbro‘s games category fell 8% in the third quarter, due to weak demand for its “Magic: The Gathering” and other games.
Revenue in the toys for girls category fell 28%, the fourth straight quarter of decline, as demand for My Little Pony and Furby toys weakened.
Games and toys for girls together account for nearly half of Hasbro‘s total revenue.
Oppenheimer & Co Inc analyst Sean McGowan said the fall in sales of girls’ toys was a concern.
“If the weakness in girls’ toys is the result of competitive shifts, then there isn’t much to be done,” he said. “Other than heavy promotion or an acquisition, there is not much thatÂ Hasbro, or any other toy company, can do to change a product’s performance in the short term.”
Morningstar analyst Jaime Katz said retailers were being more cautious and stocking inventory closer to the holiday shopping season, pushing toymakers’ sales into the fourth quarter from the third quarter.
Although Hasbro‘s sales of toys for boys jumped 24 percent, the rise was driven by demand for toys based on the latest films in the “Star Wars” and “Jurassic World” series. “Jurassic World” released in June, while “Star Wars: The Force Awakens” is scheduled for launch in December.
The company will release new toys under brands such as FurReal Friends in the current quarter as these sell better as holiday items, Chief Executive Brian Goldner said.
Hasbro‘s net revenue was flat at $1.47 billion in the quarter ended Sept. 27, missing the average analyst estimate of $1.48 billion, according to Thomson Reuters I/B/E/S. Excluding the impact of a strong dollar, revenue rose 9 percent.
Net income attributable to Hasbro rose 15 percent to $207.6 million, or $1.64 per share.
Excluding items, Hasbro earned $1.58 per share, beating the average analyst estimate of $1.52.
Hasbro‘s shares were down 7.3 percent at $72.08 in late morning trading. Up to Friday’s close, the stock had risen more than 41 percent this year.
(Reporting by Nayan Das in Bengaluru, additional reporting by Sruthi Ramakrishnan and Abhijith G; Editing by Kirti Pandey)