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Major toy manufacturers are still recovering from the loss of Toys "R" Us, even when the Best Buy Co. retailers at Party City Holdco Inc. are expanding their kids' offerings before the holidays.
Mattel Inc. and Hasbro Inc. warn investors at this week's earnings conference that there are still several quarters before us after the loss of one of its major customers, He filed for bankruptcy last September and was liquidated earlier this year.
(Read: The lessons left by the bankruptcy of Toys 'R' Us)
Their share prices have fallen. Brian Goldner, CEO of Hasbro, Monday spent much of his company's conference call convince investors that the Toys "R" Us break would be short-lived and only last for a few more quarters.
For his part, Mattel first impressed Wall Street by saying that sales in North America had increased last quarter and that the stock had increased as Barbie gained ground. But the stock changed course later when the toy maker said in its call for investors that the impact of the disappearance of the toy chain, which had also sold off divisions in many other regions, would be more marked at fourth trimester.
(Read: The four causes of the closure of Toys' R & # 39; Us)
The last quarter is the most important period of the year for the toy industry and that is why the impact of the liquidation of Toys "R" Us will be greater, said Mattel.
The company predicted that sales would fall at about the same rate as 12 months ago, 12% lower. "At first glance, the result was rather positive," said Caitlin Noselli, an analyst at Bloomberg Intelligence.
Then, the biggest impact of Toys "R" Us "shook the investor community," Mattel dropped 10% in intraday trading Friday to its lowest level since April, before reducing losses. Hasbro, for its part, fell more than a year in intraday Monday, just the day he published his financial results.
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