Mattel, Hasbro shares bounce sharply as large customer Toys 'R' Us files for bankruptcy
Shares of Mattel Inc. (MAT) and Hasbro Inc. (HAS) bounced sharply in morning trade Tuesday, despite the bankruptcy filing of Toys 'R' Us (http://www.marketwatch.com/story/toys-r-us-files-for-chapter-11-bankruptcy-2017-09-18), which was the second-biggest customer of both toy makers in 2016. Mattel's stock climbed 3.2%, after closing Monday at an 8-year low. Toys 'R' Us accounted for 11% of Mattel's sales last year. Hasbro's stock rallied 2.9%, after closing earlier this month at a 7-month low; Toys 'R' Us accounted for 9% of Hasbro's 2016 sales. UBS analyst Arpine Kocharyan wrote in a note to clients that although bankruptcies can be disruptive to industries in the near term, similar cases have not over time impacted toy industry growth, as demand has been picked up by other channels. Meanwhile, Jakks Pacific Inc.'s stock (JAKK) shed 1.8% toward a record low; Toys 'R' Us was Jakks third-largest customer last year, accounting for 9.4% of 2016 sales.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
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