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The good… Toymakers
“Hi, Barbie”… Toymakers are staging a comeback. Hasbro shares jumped yesterday after the Play-Doh and “Transformers” parent topped Q2 estimates and boosted its annual earnings forecast. While total sales fell in the quarter, Hasbro saw a 20% surge in its digital gaming revenue thanks to hit franchises like “Magic: The Gathering” and “Monopoly Go.” Hasbro also said it benefited from cost-cutting moves including layoffs. Rival Mattel (Hot Wheels, Fisher-Price) topped expectations after its quarterly profit more than doubled from a year ago (though sales ticked down). While Mattel’s doll business has cooled since last year’s “Barbie” boost, the toymaker expects adult collectors (#kidults) to fuel demand.
The bad… Luxury designers
Not Gucci… Luxury giants are losing their shine. Shares of LVMH fell 5% on Wednesday after the Louis Vuitton and Christian Dior parent missed Q2 estimates. Despite “exceptional growth” in Japan, LVMH’s profit sank 14% as demand from China (a key luxury market) stayed muted. Gucci and Saint Laurent parent Kering said “ditto” on weak demand from China: sales fell 11% in the first half of the year, and it expects operating profit to be 30% lower in the second half. Cartier owner Richemont watched sales drop 27% in the China region. And while Birkin-bag maker Hermès topped expectations, its store traffic in Asia shrank.
The ugly… Carmakers
Electro-less… Automakers had a bumpy week. Tesla stock tumbled after the EV icon reported quarterly #s: profit plummeted 45% and revenue from car sales sank 7%. It's the fourth straight quarter that Tesla’s had a bummer profit as EV rivals steal roadshare. Ford stock tanked 18% yesterday (its worst day since 2008) after it disappointed on profit as its EV biz lost $1.1B. Still, Ford’s overall sales grew in the quarter, driven by momentum for its new F-150 pickups. GM stock had its worst drop since 2022 on Tuesday, even though the Chevy maker reported record Q2 revenue. Investors worried about its growth prospects.