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- Disney's stock was flat even after its latest "Star Wars" flick reported a great box office weekend.
- Movie sales may not translate into consumer product sales, according to Jefferies Analyst Stephanie Wissink.
- The frequency of "Star Wars" movie releases may challenge merchandise sales for each individual movie.
- To watch Disney's stock price move, click here.
Though "Star Wars: The Last Jedi" had a solid opening weekend box office, bringing in an estimated $220 million in ticket sales, parent-company Disney's challenge is milking every last bit of profit out of its franchises.
Though Disney has historically been an expert in converting movie watchers to consumers, the frequency with which new "Star Wars" films come out is "testing historic patterns," Stephanie Wissink, an equity analyst at Jefferies, said.
Hasbro, Mattel, and Jakks Pacific - makers of "Star Wars" toys and merchandise - may only get a minor boost from the latest movie because the frequency of movie releases has challenged merchandise sales for each of the individual films.
"Star Wars" sales-to-date were down more than 50% compared to 2015 sales, when "Star Wars: The Force Awakens" came out, according to Wissink, and it was also down from sales for its last interstitial film, "Rogue One."
"Recognizing that the 'tail' on Jedi might be shorter, as Disney preps for another minor film in May 2018, the window for sales related to Ep 8 is closing quickly," Wissink wrote in a note.
Hasbro has the most to gain from Disney's "Star Wars" product sales. Wissink forecasts Hasbro could earn $450 million to $500 million in global sales, which includes China, in 2017, though Jefferies thinks some of that volume may be shifted into 2018.
Wissink cautioned that the 20% to 25% discounts that retailers were promoting on "Star Wars" merchandise could signify that there is "some risk of inventory carryover" for "Star Wars" products.
Disney's stock was flat on Wednesday at $111.05 per share though it was up 4.72% for the year. Shares of Hasbro, Mattel, and Jakks were down.
To read more about how Disney plans to beat streaming movie service competitors, click here.
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