Hello Kitty owner Sanrio’s shares plunge most since 2014 after 1Q earnings miss
Sanrio shares had risen almost 50% since the beginning of 2026 through Aug 10, outperforming Topix
Sanrio's shares plummeted 20% on August 10, marking the sharpest decline since 2014, following a first quarter operating income shortfall that missed market expectations. The Japanese greeting card and toy firm, known for its Hello Kitty brand, disclosed 22.4 billion yen (US$141 million) in operating income for the quarter, below the Bloomberg Consensus estimate of 23.4 billion yen.
Morgan Stanley MUFG analysts Katsumi Arai and Akiho Toyama suggested the earnings miss could lead to near-term profit-taking and weakness, but emphasized that the company's overall business trajectory remained steady. Sanrio's stock had surged nearly 50% since the start of 2026, outperforming the broader Topix index. Analysts attributed the recent performance to investor enthusiasm following a rapid share price rise since late June.
However, with no positive surprises in the earnings report, many investors appeared to view the situation as an opportune moment to sell their holdings.
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