>> The very important holiday shopping season is quickly approaching and toy makers are not in the mood for any fun and games. Hasbro, the toy company behind the Monopoly board game and My Little Pony action figures, warning Monday this could be another difficult year.>> This right here is the problem in Hasbro's eyes.
Toys R Us used to be the country's biggest toy store chain. Now, it's in bankruptcy protection. Hasbro is worried that it's not going to get all of its money. And so it is concerned about how much product it should ship to Toys R Us for the holiday season.
Hasbro gets about 9% of all of its revenue from this one toy store chain.>> That concern coming with a revenue warning from Hasbro for the three months including the holiday shopping season and follows a dire projection from small arrival, JAKKS Pacific. In September, it declared this would be a money losing year because of exposure to Toys R Us.
Fearful investor throwing pie in the face of the entire sector. Shares of Hasbro tumbling as much as 10% on Monday. Mattel, the world's biggest toy maker, shedding about 6%. With the decline at JAKKS Pacific about half that. But not all analysts are on board with the sell off.
Morningstar says, the concerns revolving around the diminished Toys R Us are quote, overblown, since the retailer secured access to financing to pay those holiday bills. And while Toys R Us did stun the industry last month with its bankruptcy filing, toy makers have more than enough time to find new places to sell their toys, whether that be in store or online.