Retailer Fear and Tariffs Hammer Hasbro's Earnings
Expectations were high going into Hasbro's (NASDAQ: HAS) third-quarter earnings report Tuesday morning. The toymaker's stock had clocked 48% gains so far this year, making it one of the best-performing consumer discretionary stocks in 2019 and illustrating just how bullish Wall Street has been on the global play and entertainment company. Investors were hoping the company could keep up its upward momentum, even in the face of a challenging environment.
However, the ongoing trade war between the U.S. and China and the uncertainty caused by on-again-off-again tariffs spooked retailers, with many canceling or delaying orders for the all-important holiday shopping season. The impact on both the top and bottom lines was significant, and Hasbro stock fell as much as 18% in the wake of its earnings report -- its biggest decline in nearly two decades -- though the stock was trading down about 16.5% by late Tuesday afternoon.
Image source: Hasbro.
Source Fool.com
