In the battle of the toymakers, Ken-and-Barbie-maker Mattel is kicking sand in the face of larger rival Hasbro as demand for games and toys surge amid the coronavirus crisis.
Maker of such iconic games as Monopoly and Scrabble, Hasbro on Monday (Oct. 26) reported that it had taken a 4 percent hit to revenue in the third quarter.
While revenue from Monopoly, Scrabble and other games actually shot up 21 percent, it was not enough, with Hasbro unable to offset a slide in revenue from its ever-more important entertainment division.
Hasbro was forced to inform investors it will not have any big holiday movie or show released over the next two crucial shopping months, a play the company has used increasingly over the years to drive sales.
Overall, COVID-19, as it has done across the entertainment world, resulted in delays in movie and TV production in its media production division, the company said.
“While COVID-19 remains a factor in our global operations, consumers remain engaged in activities that create joy and personal connections and we are working purposefully to deliver them the world’s best play and entertainment experiences,” Hasbro CEO and Chairman Brian Goldner said in a press release.
Hasbro’s disappointing results stand in stark contrast with rival Mattel, which recently beat estimates by $200 million with a more down-to-basics approach focused on toys and games.
Mattel saw sales jump 10 percent in the third quarter, with Mattel Chief Executive Officer Ynon Kreiz telling investors demand has been so heated the company is scrambling to keep up and somewhat unsure how to meet it.
With Caribbean vacations out this year amid travel restrictions, parents have more money to spend on toys, and bored children to keep occupied during lots of indoor time.
“Based on … the low retail inventories and the early start of the holiday shopping season, we expect net sales to grow in the fourth quarter,” Kreiz said told investors earlier.