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Strategies & Market Trends : Can you beat 50% per month? -- Ignore unavailable to you. Want to Upgrade?

To: Smiling Bob who wrote (7326)	10/18/2004 6:10:13 PM
From: Smiling Bob	Respond to of 19256

LF 18.20 is doomed this season, as are weak and wounded retailers like KSS Business - Reuters Toymakers Disappoint, Warn on Holidays Mon Oct 18, 9:20 AM ET Business - Reuters NEW YORK (Reuters) - The two top U.S. toymakers posted disappointing third-quarter results on Monday, citing uncertainty in the economy and cautious retailers, and tempered expectations for the crucial holiday season. AP Photo Related Quotes HAS MAT DJIA NASDAQ S&P 500 17.35 17.45 9953.22 1936.52 1114.02 -1.11 -0.52 +19.84 +25.02 +5.82 delayed 20 mins - disclaimer Quote Data provided by Reuters No. 1 toymaker Mattel Inc. (NYSE:MAT - news) said third-quarter earnings slid 5 percent from a year ago, with overall sales down 2 percent and U.S. Barbie sales plunging 26 percent. No. 2 Hasbro Inc. (NYSE:HAS - news) posted higher third-quarter earnings as it cut costs, but the results were weaker than expected, with revenue down 2 percent as sales of its once-hot Beyblade continued falling. Both toymakers said the retail environment remained "challenging." "We are currently dealing with broad consumer uncertainty related to higher gasoline prices and a lackluster employment picture which translates into uninspiring consumer confidence levels," Mattel's Chief Executive Robert Eckert said on a conference call. He said retailers are "less than sanguine" about taking inventory. Most retailers are deciding shelf space based on past performance and would rather "chase demand" than take goods early. Toymakers and retailers depend on the winter holiday season for most of their profits. Roughly 50 percent of toy sales are rung up in the fourth quarter alone, according to the NPD Group, a New York-based market information company. The U.S. toy industry is still recovering from weak sales in 2003, when the holiday season was hit by a price war that drove FAO Inc., parent of FAO Schwarz toy stores, and mall-based toy chain KB Toys to file for bankruptcy protection. Mattel, which also makes Hokey Pokey Elmo and Matchbox cars, said third-quarter earnings fell to $255.9 million, or 61 cents a share, from $270 million, or 61 cents, while sales fell 2 percent to $1.67 billion. Worldwide Barbie sales were down 13 percent, but sales of the preschool unit Fisher-Price brand rose 7 percent, and American Girl doll sales were up 9 percent due mainly to the its new shop in New York City. Hasbro, based in Pawtucket, Rhode Island, said third-quarter net income rose to $88.7 million from $85.8 million, while earnings per share fell to 45 cents from 48 cents per share on an increase in average shares outstanding. Analysts, on average, estimated profit of 51 cents per share from Hasbro, the maker of My Little Pony and Transformers, according to Reuters Estimates. Revenue fell 2 percent to $947.3 million from $971.1 million. Hasbro Chief Executive Alfred J. Verrecchia said third quarter top-line performance was "disappointing," with a "challenging" environment and softness in the boys' division. He said Hasbro was confident it could continue to increase earnings over the rest of the year as it cut costs and achieved its operating margin goal of 12 percent or better by 2005. "However, given our top line performance year-to-date and the uncertain retail environment, it is increasingly unlikely that we will achieve our goal of revenue growth for 2004," Verrecchia said in a statement. story.news.yahoo.com