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: Toy sales see ‘meaningful deceleration’ at Target, and Hasbro, Mattel stocks fall

Target’s earnings woes spilled over to shares of toy makers Hasbro and Mattel after the retailer said it saw a sharp slowdown in toy sales in October.

Target Corp.

reported early Wednesday fiscal third-quarter earnings that missed expectations by a wide margin and guided for a surprise decline in same-store sales for the current quarter covering the holiday season.

That slowdown included the discretionary category of toys at a time when the holiday shopping season was getting under way.

“[W]e saw a meaningful deceleration in toys this quarter, most notably in October,” said Target’s Chief Growth Officer Christina Hennington in the post-earnings conference call with analysts, according to a FactSet transcript. “This is a trend we will continue to monitor closely as we move throughout the holiday season.”

Hasbro Inc.’s

stock dropped 4.7% to close Wednesday at $55.97, the lowest close since March 2020. Mattel Inc.’s

stock shed 2.2% to $17.08, but was still above Monday’s two-year closing low of $16.66.

Also read: Hasbro is making too many ‘Magic: The Gathering’ cards, analyst says in downgrading stock.

In comparison, the SPDR Consumer Discretionary Select Sector exchange-traded fund

fell 1.5% to $142.53 on Wednesday and the S&P 500 index

lost 0.8% to 3,958.79.

Last month, Hasbro reported third-quarter profit that missed expectations while Mattel fell short on sales and lowered its full-year outlook.

With the toy-sales trends in mind, Target’s Hennington said weeklong Black Friday deals will include prices of up to 50% off across the toys and games categories.

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