Hasbro Reports 71% Profit Loss in the First Quarter of 2011

whacko wrote:You know what's good or getting you earnings up? Getting you damn toys into stores! The only Transformers products I have seen at any of 20 shops near my house have old ROTF Toys and not many of those.

I get it, most stores are waiting for the avalanche of TF3 toys before stocking up. But don't you guys (Hasbro) have any sales reps pushing your partner retailers to get the latest lines like Generations and RTS?

Not only that, but Hasbro doesn't even stock HasbroToyShop.com very well. There are tons of toys I would hand my money over for if they were available for me to buy.

due a reduced demand for toys in the first quarter many retailers have decided to focus on clearing out leftover holiday inventory rather than ordering new product (sound familiar?).

RodimalToyota wrote:Might help to get the Tuner Mudflap ROTF toys off the shelves so i can get some gosh darn RTS stuff before it's annihilated by DOTM.

kirbenvost wrote:I was going to say, their sales would be a lot better if shelves weren't full of old crap or NOTHING AT ALL. I guess this can partially be blamed on retailers ordering way too much of the wrong things.

It's like they don't know how to predict how things will sell. Just because initial shipments of Generations Wave 1 sold quickly didn't mean they had to order 5 times as much on the next order, thus shelfwarming pegs even now.

And now of course they want to wait for DOTM. :rolleyes:

That's why I ordered all my recent stuff on BBTS. With the strong Canadian dollar, it's actually comparable even with shipping.

Seibertron wrote:I keep saying our stock got sent overseas to capitalize on the higher dollar due to a quarterly loss here. Or maybe they just got what they were supposed to get and orders are simply down.

I keep saying it and I'll say it one more time: stop wasting gas driving around for these figures, buy the figures online or import them, or don't plan on getting them.

ae_productions wrote:Someone mentioned RTS (Generations) peg warmers. Where are you at? The ONLY peg warms we have here, and we have them in mass quantity, is ROTF toys.

ae_productions wrote:

Seibertron wrote:I keep saying our stock got sent overseas to capitalize on the higher dollar due to a quarterly loss here. Or maybe they just got what they were supposed to get and orders are simply down.

I keep saying it and I'll say it one more time: stop wasting gas driving around for these figures, buy the figures online or import them, or don't plan on getting them.

You may be right. It's hard paying 2 - 5 times what a figure retails for. But if you add in the wasted time, the cost of gas...it adds up.

Someone mentioned RTS (Generations) peg warmers. Where are you at? The ONLY peg warms we have here, and we have them in mass quantity, is ROTF toys.

rpetras wrote:

RodimalToyota wrote:Might help to get the Tuner Mudflap ROTF toys off the shelves so i can get some gosh darn RTS stuff before it's annihilated by DOTM.

QFT!

I have FIVE, count them FIVE pegs full of Tuner Mudflaps at my local TRU.

Twitchythe3rd wrote:It's a case of Garbage In, Garbage Out.

Retailers aren't seeing a need to order new stuff when theres a ton of old stuff that needs to be cleared out.

headsortails wrote:I have given up on searching retail stores. I only look at Walmart's simply because I go there to get groceries, and I'm not even disappointed anymore. I won't even go to Toys R Us, unless they have an exclusive I want. Everything I get now days comes from BBTS or Robotkingdom.com Hasbro should really start looking at this site more than they do to see what the fans have to say. Tell you what Hasbro- just open a new department of people just to look at all the fan-based sites for your toys and come up with ideas and I'll be the first one to turn in an application......

Kibble wrote:I really don't understand why Hasbro doesn't put more effort into making sure hasbrotoyshop.com is fully stocked all the time! If the B&M stores can manage to put figures on sale for $8 or $9 a pop, I can't imagine they're doing so at a loss...so if they're paying Hasbro that or less per fig, yet Hasbro still charges full retail price at HTS.com, you'd think they'd like to sell all the merchandise they possibly could via their website and make that much more profit per figure.

El Duque wrote:Hasbro is reporting a 71% drop in profits for the first quarter of 2011. That figure sounds worse than it actually is , as there are several factors that need to be taken into consideration. First quarter sales for toy companies usually take a hit due to following the holiday season, Hasbro has made a sizable investment in getting The Hub off the ground, and due a reduced demand for toys in the first quarter many retailers have decided to focus on clearing out leftover holiday inventory rather than ordering new product (sound familiar?).

There is however a silver lining, boys products were actually up 25% while girls, preschool, and games showed a loss. Despite their weak start Hasbro's Brian Goldner remains optimistic for the remainder of the year and states they are still on track for their full year's sales plans. Hasbro has a huge entertainment line-up for this summer, which includes toy lines for "Captain America: the First Avenger", "Thor", and of course "Transformers DOTM" to help bolster sales. To read more click follow these links: Reuters or Yahoo

whacko wrote:You know what's good or getting you earnings up? Getting you damn toys into stores!

chuckdawg1999 wrote:This always happens in off years when there is no movie. Be worried after DOTM if this happens again and continues to happen.

Seibertron wrote:I keep saying our stock got sent overseas to capitalize on the higher dollar due to a quarterly loss here. Or maybe they just got what they were supposed to get and orders are simply down.

I keep saying it and I'll say it one more time: stop wasting gas driving around for these figures, buy the figures online or import them, or don't plan on getting them.

Revenues from the Company’s top five customers, all retailers, accounted for approximately 50% of its consolidated net revenues in 2010 and 54% and 52% of its consolidated net revenues in 2009 and 2008, respectively. In recent years certain customers in the retail sector have experienced economic difficulty. ...

The Company’s revenue pattern continues to show the second half of the year to be more significant to its overall business for the full year. In 2010, approximately 65% of the Company’s full year net revenues were recognized in the second half of the year. Although the Company expects that this concentration will continue, particularly as more of its business has shifted to larger customers with order patterns concentrated in the second half of the year, this concentration may be less in years where the Company has products related to a major motion picture release that occurs in the first half of the year. In 2010, the Company had products related to the mid-year major motion picture release of IRON MAN 2, while in 2009 the Company had products related to the mid-year major motion picture releases of TRANSFORMERS: REVENGE OF THE FALLEN, G.I. JOE: THE RISE OF COBRA and X-MEN ORIGINS: WOLVERINE. The concentration of sales in the second half of the year increases the risk of (a) underproduction of popular items, (b) overproduction of less popular items, and (c) failure to achieve tight and compressed shipping schedules. The business of the Company is characterized by customer order patterns which vary from year to year largely because of differences in the degree of consumer acceptance of a product line, product availability, marketing strategies, inventory levels, policies of retailers and differences in overall economic conditions. The trend of larger retailers has been to maintain lower inventories throughout the year and purchase a greater percentage of product within or close to the fourth quarter holiday consumer selling season, which includes Christmas.

Quick response inventory management practices being used by retailers result in more orders being placed for immediate delivery and fewer orders being placed well in advance of shipment. Retailers are timing their orders so that they are being filled by suppliers closer to the time of purchase by consumers. To the extent that retailers do not sell as much of their year-end inventory purchases during this holiday selling season as they had anticipated, their demand for additional product earlier in the following fiscal year may be curtailed, thus negatively impacting the Company’s future revenues.

Megatron Wolf wrote:Maybe the reason is because theres been nothing new out since november and the shelves have been empty since mid january, theres demand but no supply and thats why hasbro is losing money. Oh and dont forget the price gouging that alot of stores are doing $15 for a deluxe and $27 for a voyager is outragious, many people see those prices and just keep walking even if they see the figure they want. If hasbro actually did some leg work this wouldnt be happening, the fans would be happy cause theyd have the toys they want and hasbro would be happy cause they'd be rich little bastards instead of just bastards. Im going to start taking pictures off all the barren isles in teh store around me and send them to hasbro, its not just tf thats not there star wars and gijoe are all gone as well or almost all gone. That hasbros 3 flagship boys merchandise. It pisses me off cause all the figures that i really want are in these last couple of wave that im sure ill never see. Its all bayformers fault if you think about it, and hasbro for making stupid repaint that no one wants or the original is still on the shelves.

bvzxa wrote:Well I wouldn't blame this on the movie-line. Hasbro should have just left well enough alone and stop trying to cash in on ROTF> HFTD should have been released in ROTF, and that way they would have gotten out Generations early. If you ask me Generations was released very badly overall.

Megatron Wolf wrote:Maybe the reason is because theres been nothing new out since november and the shelves have been empty since mid january, theres demand but no supply and thats why hasbro is losing money. Oh and dont forget the price gouging that alot of stores are doing $15 for a deluxe and $27 for a voyager is outragious, many people see those prices and just keep walking even if they see the figure they want. If hasbro actually did some leg work this wouldnt be happening, the fans would be happy cause theyd have the toys they want and hasbro would be happy cause they'd be rich little bastards instead of just bastards. Im going to start taking pictures off all the barren isles in teh store around me and send them to hasbro, its not just tf thats not there star wars and gijoe are all gone as well or almost all gone. That hasbros 3 flagship boys merchandise. It pisses me off cause all the figures that i really want are in these last couple of wave that im sure ill never see. Its all bayformers fault if you think about it, and hasbro for making stupid repaint that no one wants or the original is still on the shelves.

amtm wrote:An excerpt from Hasbro's annual report filed earlier this year. Maybe this will provide some insight. (Bolding added by me.)

Revenues from the Company’s top five customers, all retailers, accounted for approximately 50% of its consolidated net revenues in 2010 and 54% and 52% of its consolidated net revenues in 2009 and 2008, respectively. In recent years certain customers in the retail sector have experienced economic difficulty. ...

The Company’s revenue pattern continues to show the second half of the year to be more significant to its overall business for the full year. In 2010, approximately 65% of the Company’s full year net revenues were recognized in the second half of the year. Although the Company expects that this concentration will continue, particularly as more of its business has shifted to larger customers with order patterns concentrated in the second half of the year, this concentration may be less in years where the Company has products related to a major motion picture release that occurs in the first half of the year. In 2010, the Company had products related to the mid-year major motion picture release of IRON MAN 2, while in 2009 the Company had products related to the mid-year major motion picture releases of TRANSFORMERS: REVENGE OF THE FALLEN, G.I. JOE: THE RISE OF COBRA and X-MEN ORIGINS: WOLVERINE. The concentration of sales in the second half of the year increases the risk of (a) underproduction of popular items, (b) overproduction of less popular items, and (c) failure to achieve tight and compressed shipping schedules. The business of the Company is characterized by customer order patterns which vary from year to year largely because of differences in the degree of consumer acceptance of a product line, product availability, marketing strategies, inventory levels, policies of retailers and differences in overall economic conditions. The trend of larger retailers has been to maintain lower inventories throughout the year and purchase a greater percentage of product within or close to the fourth quarter holiday consumer selling season, which includes Christmas.

Quick response inventory management practices being used by retailers result in more orders being placed for immediate delivery and fewer orders being placed well in advance of shipment. Retailers are timing their orders so that they are being filled by suppliers closer to the time of purchase by consumers. To the extent that retailers do not sell as much of their year-end inventory purchases during this holiday selling season as they had anticipated, their demand for additional product earlier in the following fiscal year may be curtailed, thus negatively impacting the Company’s future revenues.

Seibertron wrote:

headsortails wrote:I have given up on searching retail stores. I only look at Walmart's simply because I go there to get groceries, and I'm not even disappointed anymore. I won't even go to Toys R Us, unless they have an exclusive I want. Everything I get now days comes from BBTS or Robotkingdom.com Hasbro should really start looking at this site more than they do to see what the fans have to say. Tell you what Hasbro- just open a new department of people just to look at all the fan-based sites for your toys and come up with ideas and I'll be the first one to turn in an application......

I can assure you that they check out this site and are well aware of these distribution problems. Not sure what the problem is on their end, but they're aware of the problem.

Rated X wrote:Try stopping all these corparate stratagies and just listen to your buyers. If if you really consider kids your primary target, create a damn online survey for kids on your website instead of corny video games.