Mattel and Hasbro have adjusted their year-end guidance due to declining toy sales.
Both companies reported mixed results for the third quarter, with earnings per share surpassing expectations but revenue falling short.
As a result, both firms have revised their forecasts for the crucial final quarter of the year.
Mattel expects sales to be comparable to slightly down, while Hasbro projects a revenue decline of between 12% and 14% for its consumer products division.
The toy market is experiencing a downturn, with sales expected to decline by approximately 2% to 5%.
Despite these challenges, Mattel remains optimistic about the holiday season, while Hasbro has a more cautious outlook.
Economic factors, such as the upcoming presidential election and recent climate disasters, may impact consumer spending.
The stock market has reacted accordingly, with Mattel's shares increasing and Hasbro's declining.
The future outlook for the toy industry remains mixed, and both companies will need to navigate a complex landscape of consumer preferences and economic uncertainties.