In a response to the economic slowdown and parents holding back on impulse purchases, both Mattel Inc. and Hasbro Inc have now come out saying that most of their toys will cost less than $20 this Christmas. Both companies hope this move/statement will help boost profits in the 4th quarter sales especially since traditionally toymakers make at least a third of their annual revenue in the fourth quarter.
The average toy price currently at Mattel is just under $20, where two-thirds of Hasbro's toys sell for under that price (not so within the UK it must be noted).
Yesterday Mattel's shares climbed 10 cents to $18.14 at 4 p.m. in New York Stock Exchange, where as Hasbro's share price fell by 35 cents (1%) to $34.37. Overall this year Mattel has lost lost 4.7 percent while Hasbro's shares have gained value by 34 percent.
Toymakers raised prices this year to counter higher plastic
and energy costs as well as increased product testing following
last year's recalls of more than 20 million Chinese-made
products. Hasbro's Goldner said the company has taken two "mid-
single-digit" price increases this year and may have to further
do so beginning in 2009.
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