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> With speculation of a bankruptcy mounting, shares of Toys “R” Us’s vendors tumbled on Monday. Mattel Inc., the maker of Barbie and Fisher-Price, fell 6.2 perc
by tempestn 9y ago
> With speculation of a bankruptcy mounting, shares of Toys “R” Us’s vendors tumbled on Monday. Mattel Inc., the maker of Barbie and Fisher-Price, fell 6.2 percent -- its worst decline in seven weeks. Shares of Hasbro, the company behind Monopoly, Nerf and Transformers, dropped 1.7 percent.
Does Toys R Us owe money to Mattel? Or are people thinking that if they go away or significantly reorganize people will just buy fewer toys of these types? On the surface a 6% drop for Mattel seems huge based on this news. If a grocery chain goes into bankruptcy, you're not going to see Coca Cola stock drop..
- danhak 9y agoAccording to this article, Toys "R" Us accounts for about 10% of Mattel's revenue. That seems pretty significant: https://www.reuters.com/article/us-orbital-atk-northrop-grumman/northrop-grumman-nears-deal-to-purchase-orbital-atk-source-idUSKCN1BS0YB https://www.reuters.com/article/us-orbital-atk-northrop-grum...
- tempestn 9y agoIf Toys R Us is responsible for about 10% of all toy sales by revenue that wouldn't be terribly meaningful, but yeah, if they sell proportionally more Mattel toys, whereas other retailers might sell comparable toys from other brands more, that could certainly account for it. Thanks.