Hasbro cuts jobs and predicts continued sales decline

  • Hasbro warns of sluggish holiday sales and cuts workforce by nearly 20%
  • Hasbro stock falls 4.4% and Mattel stock falls 1.7% after the announcement
  • Hasbro CEO cites weaker sales and expects the trend to continue into next year
  • Early data shows a 10% drop in toy sales compared to last year
  • Mattel expects flat sales for the full year

Shares of Hasbro and Mattel fell after Hasbro warned of sluggish sales in the holiday period and slashed nearly 20% of its workforce. Hasbro stock fell 4.4% to $46.75 after-hours, while Mattel stock fell 1.7%. Hasbro Chief Executive Chris Cocks announced the job cuts, attributing them to weaker sales this year and expecting the trend to continue into next year. Early data from the holiday shopping period shows a 10% drop in toy sales compared to last year. Mattel expects flat sales for the full year, with recent results boosted by the success of the Barbie movie.

Public Companies: Hasbro (HAS), Mattel (MAT)
Private Companies:
Key People: Chris Cocks (Hasbro Chief Executive)

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Factuality Level: 8
Justification: The article provides specific information about the decline in shares of Hasbro and Mattel, as well as the reasons behind it, such as sluggish sales and job cuts. It also includes data from Circana about the decline in toy sales during the holiday season. However, the article does not provide any opposing viewpoints or alternative explanations for the decline in sales, which could potentially introduce bias. Overall, the article seems to be based on factual information, but it would benefit from more comprehensive reporting.

Noise Level: 6
Justification: The article provides information about the decline in shares of Hasbro and Mattel, as well as the reasons behind it. It mentions the workforce reduction and weaker sales, supported by statements from Hasbro’s CEO. It also includes data on toy sales during the holiday period. However, the article lacks in-depth analysis, scientific rigor, and actionable insights. It stays on topic and supports its claims with data, but it does not explore long-term trends or antifragility.

Financial Relevance: Yes
Financial Markets Impacted: Hasbro and Mattel

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses the decline in shares of Hasbro and Mattel due to sluggish sales and job cuts. While this is a significant development for the companies, it does not describe an extreme event.

Reported publicly: www.marketwatch.com