Games grow, but boys biz tumbles at Hasbro
PAWTUCKET, R.I. — Strength in the games category enabled Hasbro to increase first quarter revenues by 2% to $664 million compared to $649 million for the same period last year.
First quarter revenues were negatively affected by $3 million due to the impact of foreign exchange and one less week in the reporting period. The first quarter 2013 was a 13-week period compared to the first quarter 2012, which was a 14-week period.
The company also reported a nearly $7 million loss for the quarter, more than double a $3 million loss the prior year. However, on an adjusted basis to exclude pre-tax charges of $29 million associated with restructuring actions as well as favorable tax adjustment of $6 million, net earnings increased 30% to nearly $7 million compared to net earnings of $5 million.
“We entered 2013 with a heightened focus on our brands, organization and profitability, and delivered a good start to the year,” said Hasbro president and CEO Brian Goldner. “In the first quarter, our global Hasbro teams generated revenue growth and strong underlying profitability growth. We are creating innovative consumer experiences across our brand blueprint globally while improving efficiencies and focus throughout our business.”
Goldner also indicated the company’s emerging markets continued to post double-digit revenue gains while the U.S. and Canada team delivered revenue growth and profitability improvement. The re-invention of our Hasbro’s games business led to another quarter of revenue growth and brand innovation and new initiatives delivered gains in the Girls and Preschool categories.
The games category was the company’s top performer with sales advancing 26% to $231 million due to the popularity of properties such as Magic: The Gathering, Angry Birds Star Wars, Transformers, Twister and Monopoly. The girl’s segment was a close second to games with sales advancing 23% to $115 million with strength from Furby, My Little Pony and One Direction.
It was a different story in the boy’s category where sales declined by 20% to $243 million as several unidentified brands faced weakness. The preschool category grew by 8% to $75.2 million, led by Play-Doh and Playskool Heroes.