Hasbro posts loss in first quarter on weak toy sales

Hasbro posted a loss in sales revenues in the first quarter of 2012, pushing its shares down five percent.

The toymaker reported a first-quarter loss of $2.6 million, compared with a profit of $17.2 million in the same quarter a year earlier.

The company's games division, which includes popular titles like Battleship and Operation, was hardest hit, falling nine percent, reported the Wall Street Journal.

The number two toymaker's revenue dropped three percent to $648.9 million from $672 million a year ago, said the Associated Press, with $289.7 million if that coming from overseas markets.

Revenues from the US and Canada were down.

Demand in girls toys fell despite a resurgence in My Little Pony.

According to Reuters, retailers that carry the games are struggling to sell off inventories, which means that they have put off orders from toymakers.

Yet, the Hasbro CEO remained upbeat in a recent interview with reporters.

"For the full year 2012, we continue to believe, absent the impact of foreign exchange, we will again grow revenues and earnings per share," said CEO Brian Goldner, according to Reuters. 

First-quarter earnings for toymakers are usually lower as consumers spend less on toys after the holidays.

Analysts remain skeptical, noting that many toymakers have slumped recently, including Mattel, the maker of Barbie.

"The games business continues to be a pretty big weight around their neck," he said.

"Until they can see positive retail level growth from their games business it is hard to see how exactly the business will turn around internally," said research analyst at Longbow Research, James Hardiman, according to Reuters.