Author Topic: Hasbro 1st Quarter Losses  (Read 2009 times)

Offline Jeff

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Re: Hasbro 1st Quarter Losses
« Reply #15 on: April 25, 2006, 02:39 PM »
I think it's all the fault of one certain person for not buying enough Star Wars stuff.

You know who you are...  and you made Hasbro mad.    >:(
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Offline Rob

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Re: Hasbro 1st Quarter Losses
« Reply #16 on: April 25, 2006, 02:42 PM »
Quite frankly, Hasbro is a little bit underwhelmed by the subscription rate...er.... number of SW toys sold first quarter.

Offline Dressel Rebel

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Re: Hasbro 1st Quarter Losses
« Reply #17 on: April 25, 2006, 04:03 PM »
I think if there's any merit to the claim that the reason why they won't make any new ships is that to make a new mold is too expensive, then there really is no excuse for these transformers, force battlers, attack tix, and galactic heroes.  All of these things are pieces of junk.

They should do away with all of that crap and concentrate solely on the 3 3/4" line of basic figures and vehicles.  I can deal with the occasional wave of VTSC figures, although I still think they can incorporate 14 points into the basic line, at least they're doing it in the VTSC line.

There is no other toy line like Star Wars.  Stores have a hard time keeping this stuff on the shelf.  My Walmart got 15 cases of VTSC figures 1 week ago.  That is 30 of each of the 5 figures.  What's left as of today?

9 Han Endor
10 Greedo
2 Tusken Raiders
4 Luke Pilots
0 Biker Scouts
-----------------------
25 total VTSC figures remaining, 125 VTSC sold in 1 week.

So 1 store sold $1,250 worth of Star Wars figures in 7 days.  There is no other toy line like that.

Now, care to venture what an endcap full of transformers and force battlers would have sold?  Maybe $100, and probably all by mommies buying it for their kids who know they like Star Wars but don't know exactly what they want.


They need to do away with all the crappy sub lines, and give us VTSC and 3 3/4" basic with new vehicles.
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Offline Dressel Rebel

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Re: Hasbro 1st Quarter Losses
« Reply #18 on: April 25, 2006, 04:06 PM »
And for ****'s sake stop shipping these horrendous plastic lightsabers, they're ridiculous.
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Offline Famine

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Re: Hasbro 1st Quarter Losses
« Reply #19 on: April 25, 2006, 05:32 PM »
2 Tusken Raiders

And did you pick me up said Tusken Raiders?

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Offline Morgbug

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Re: Hasbro 1st Quarter Losses
« Reply #20 on: April 25, 2006, 09:09 PM »
And for ****'s sake stop shipping these horrendous plastic lightsabers, they're ridiculous.

I agree they are ridiculous, but those little $10 pieces of junk sell like crazy and they're reasonably durable.  I keep them around so kids can pick those up instead of an FX saber.  Lightsabers in general, whether basic or electronic sell like kookoo around here. 
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Offline Gatillo

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Re: Hasbro 1st Quarter Losses
« Reply #21 on: April 25, 2006, 09:33 PM »
Around here too.  Being a big college town, I have seen frat boys being dozens of them for parties or greek week events.  Same goes for varsity teams and sport clubs.  These things move better than vehicles and second only to figures.
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Offline ruiner

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Re: Hasbro 1st Quarter Losses
« Reply #22 on: April 26, 2006, 09:56 AM »
Yeah, I have to give props to the lightsabers.  Kids love those damn things.

I think LFL pushed Hasbro to develop the lines that aren't selling (Tformers, Choppers, etc.) to drive home the message that "Star Wars is Forever."

Star Wars is forever...but only in role play, props and figures!

 ;D

Offline CHEWIE

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Re: Hasbro 1st Quarter Losses
« Reply #23 on: April 27, 2006, 02:32 PM »
The lightsabers are even shown in the Orkin Man commercials now!  ha ha

I agree though, all these sublines are a waste.  Concentrate on the basic line with supporting vehicles/small playsets.  Much better than the crap they've tried to push with their other lines.

The funny thing is, we all saw this coming.   ::)

 :)

Offline Gatillo

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Re: Hasbro 1st Quarter Losses
« Reply #24 on: April 27, 2006, 04:06 PM »
Sometimes I really think Hasbro keeps an eye out on websites and boards like this one but then they do stuff that makes you wonder if they produce certain figures by sheer luck instead of knowledge.
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Offline Jeff

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Re: Hasbro 1st Quarter Losses
« Reply #25 on: April 28, 2006, 03:36 PM »
So, this afternoon I finally had a chance to listen to the Q1 2006 Hasbro, Inc. Earnings Conference Call (click on section 2 to hear them talk about SW, a few minutes in).

For those too lazy to listen, in this conference call, they claim that sales of Star Wars for 1st Quarter of this year were at $51 million globally, compared to $101 million in 1st quarter 2005 (that number included all merchandise that was available in stores on April 3, 2005)!   :o

They also go on to talk about how 2nd quarter will suck-ass since 2nd quarter last year had $147 million in Star Wars sales globally and they only expect to make half of that in this year's 2nd Quarter if they are lucky (and THAT is the whole reason the UGH promotion is in 2nd Quarter  ;)).

And finally, in the Q-N-A portion, they talk a LOT about how they are banking on the Transformers Movie and Spider-Man / Marvel in 2007 to really pick them up going forward as they see more and more Star Wars drop-off...  :(
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Offline Brian

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Re: Hasbro 1st Quarter Losses
« Reply #26 on: April 28, 2006, 03:42 PM »
Thanks for posting that Jeff, always interesting to hear what they're saying about our favorite line here.  Of course a drop off is to be expected from last year to this year - it was a movie year, and a very popular line overall it seemed.  I know I've never seen so much action in the aisles with kids, parents, and collectors combined.  But, it seems like this year Star Wars seems to be just as popular - at least when it is on the pegs.  Things have been selling through pretty good up to this point, although a few figures are starting to sit here and there just like any other year.  Sure, I'm sure its not ROTS volume, but it still does well.  The thing is, it seems like there are some obvious fixes that we discuss here often that would help their line out immensely.  I think dropping most of the "other" lines (particularly the crappy ones), focusing more with the figure line (make them all worth $6-$7 if that's what they are going to charge), and maybe even lessen the overall figures released in a year to some extent.  There's so much stuff out there, I know I can barely keep up with just basic figure stuff and a few other things - I can't imagine if I was a kid (which is the market they consistently want to focus on).  With them even admitting the big pushes for Transformers and Marvel (and I'm a Marvel/Spidey fan) next year, I'll be curious to see what type of attention Star Wars will get (it is the 30th anniversary after all).  Hopefully they'll focus in on quality and not so much on quantity.  Maybe its just because I don't have that big of a budget for collecting, but I honestly don't think I'd mind if they cut back to 30-40 figures a year (or less) and give them all the type of attention the VTSC seems to have - just at a cheaper price (or at least a little bit).

Offline Jesse James

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Re: Hasbro 1st Quarter Losses
« Reply #27 on: May 1, 2006, 04:08 AM »
Wouldn't it have been fun to interject in the call that "hey if it was actually available I might've bought some stuff in Q1".   I mean, for most of the first 3 months of this year there wasn't a lot to pick from...  Well, not out of the basic line anyway.  3 - 4 waves shipped, but none shipped heavily for quite a while...  Here we are in May, and my WM stores are barren again after a brief spurt of having stuff.  Most now only have a couple figures...   3 is the most I have seen in the last couple weeks.

Target and TRU are backing up with the usual suspects of Vader, Yoda, Poggle, and Derlin...

Beyond that, there's nothing out there really.  not here anyway.  Could SW be selling like **** right now because what's good can't be found, and the crap that sucks is overflowing (Choppers, Transformers, Force Battlers, erc.)?  I get that they want to focus on kids some, but are kids even buying this stuff over the basic line? 
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Offline TheBlackDog65

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Re: Hasbro 1st Quarter Losses
« Reply #28 on: May 1, 2006, 09:32 AM »
Interesting listen.  This year I know this. IF I am at a Target at opening and it is the day they receive a shipment you can score new figures. Same thing with Walmart. IF your there on the night they get the new stuff, and IF you are willing to open the cases or get permission to do so you can get the new stuff. Finally, IF you know your secondary market of retailers, and if you either have some luck or can figure out their stocking days, you can score new product. Finally, you can order online and get your items after they hit retail (If you order from EE it seems).  Bottom line, Hasbro should have 1)expected to sell less this year and built that into their business plan. IF I had not done that on the unit I led at a fortune 500 company, my Exec. VP would have had my head. Second, is the same issue that has been going on for years in a non-movie year. They need to ensure that more product is out. Now we are heading into the dry summer months and the Tatooine wave and Endor wave will probably be some of the tougher waves to find. Hasbro needs to take the blunt of their poor profits because they did not anticipate demand for their product, and yes Jesse, your right, they invested into lame new lines that their research should have told them would never have sold.  The choppers and transformers should have came out with the movie last year, IF you wanted to gamble and see what they would have done.   You use the momentum of a movie to bring out new stuff and build a following. Unfortunetly, I think both lines are rather lame, and are poor product choices.
What I would really like to see and be a fly on the wall, are the meetings between senior executives on what their strategy for the line is. So far, it sounds like they are planning on the line dying off a slow death. That's not good in the long term for the line. Just because they have a license doesn't mean we will always see product every year. Next year, yes due to the 30th anniversary. By 2010 though, I could see Hasbro issuing specific VOTC type figures or  series of special figures each year, or every other year. I really believe that Hasbro will mis-manage the line such that it will eventually die off. Sad really.
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