Hasbro's profit and sales slipped in the third quarter as families watched their spending on toys more closely with inflation cutting into budgets.
“The third quarter is our most difficult comparison and was further impacted by increasing price sensitivity for the average consumer,” said CEO
Revenue for the
The toymaker was also hit by a 26% decline in revenue from film and TV when compared with last year at this time, which benefitted from the streaming release of the films “Come from Away" and "Finch.”
But families are pulling back on spending as prices rise for necessities like food and housing. The timing of the pullback coincides with the holiday season, which is a period that toy companies and other retailers rely on for a significant amount of sales. It remains to be seen if consumers will spend freely as that had been on gifts this year, or if they'll be waiting for sales.
But there is growing evidence that Americans are cutting spending where they can as inflation takes a bite. The
Shares fell almost 2% Tuesday.
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