Hasbro Reports Q4 Sales Decline Unexpectedly

[ShinHakkaider]

ICv2 - Hasbro Reports Q4 Sales Decline

 

[Nagol]

A foundering parent very easily could be putting capital pressure on WotC.

That'd explain the short review/announcement timeframe (got to start damage control before earnings season!) and the trimming of the capital expenditure.

 

[kmdietri]

Could possibly shed some light on their recent announcements.

 

[Lord Xtheth]

OH NO, We only have 1.3 BILLION dollars this quarter!
Time to start making our products WORSE, that'll make money right? RIGHT?


Ugh. I think I'm starting to dislike hasbro.

 

[Dungeoneer]

Remember, we're in a pretty serious recession and people are nervous. Especially people who are corporate execs.

 

[shadzar]

But they are dumping more money into WotC board games and digital presences from what someone else posted around here.

 

[Nagol]

But they are dumping more money into WotC board games and digital presences from what someone else posted around here.

I work for a wholly owned subsidiary. I've seen "pull-back" edicts come from our parent in two different ways.

The first is "Slash your capital spending to X dollars." Very straight-forward, projects get prioritised and funding starts at the top. All projects still unfunded once the money runs out are scrapped.

The second edict is "All projects must have an internal rate of return of X or more within Y years". All project proposals are reviewed for the expected benefits and those that no longer meet the head office threshold stop.

Neither method offers a great measure, but they are simple and easy to enforce. In both cases, the final decision rests with the subsidiary.

 

[MoxieFu]

I remember hearing on the news that overall sales for Christmas 2010 in the US were better than 2009. If that's the case, shouldn't Hasbro's sales be better?

I tried to verify this on Google but only came up with come-on ads for post-Christmas sales and not much in the way of figures. I do remember hearing this on the local news though and that's why I wanted verification.

 

[Aberzanzorax]

I have heard that as well (not that I'm much of an official source). I'm pretty sure about it. It was, in part due to starting christmas immediately after Halloween . It was also in part due to...

...our improving economy. Some may disagree, but everything I've seen about the economy at this point is that we are in a (pretty darn slow) upswing and have been for almost a year.

One of the best indicators of this is the housing market. Values are returning. Prices have stopped declining and are beginning to rise.



So, while, yes, we are in a recession, I don't think that's the SOLE answer. I also don't think D&D hurt Hasbro last quarter. I think I read that D&D actually did well. But D&D isn't big enough to impact Hasbro's profits. I agree, though, that Hasbro may have told WotC to cut costs wherever they can.

On the other hand, in my opinion, it may be that some companies are still suffering from the recession even while the economy improves. After all, if money is tight, I'm going to put food on the table before I buy boardgames and toys.

 

[Nagol]

I remember hearing on the news that overall sales for Christmas 2010 in the US were better than 2009. If that's the case, shouldn't Hasbro's sales be better?

I tried to verify this on Google but only came up with come-on ads for post-Christmas sales and not much in the way of figures. I do remember hearing this on the local news though and that's why I wanted verification.

Not if other sectors like clothing, food, or jewellry really shone this year. It's easy to have an overall increase and have individual sectors lose.