Hasbro lacks revenue momentum heading into Toy Fair
PAWTUCKET, R.I. — Heading into the toy industry's largest trade show next week, toy manufacturer, Hasbro, reported net revenues of $1.28 billion for the fourth quarter of 2012, compared with $1.33 billion in 2011. The company reported net earnings for the quarter of $130.3 million or 99 cents per diluted share.
Net revenues for the full-year 2012 were $4.09 billion compared with $4.29 billion in 2011.
Net earnings for the full-year 2012 were $336 million, or $2.55 per diluted share, versus $385.4 million, or $2.82 per diluted share, in 2011.
“In 2012, we achieved many important objectives for the year, including improving the U.S. and Canada segment operating profit margin to 15.1%, growing our games and girls categories and driving 16% revenue growth in the emerging markets while improving profitability,” said Brian Goldner, Hasbro’s president and CEO. “We did, however, face difficult year-over-year comparisons and a challenging holiday season in certain geographies.”
“We also began an important next step in realizing our full potential as brand builders, with the implementation of a cost savings initiative designed to better align resources and costs while delivering $100 million in annual savings by 2015,” continued Goldner. “Our strategy during the past several years has focused on delivering compelling brand innovation while investing in and establishing the capabilities required for developing content-rich brand initiatives that consumers and retailers around the world want. With the investments in these capabilities in place, we are now taking the next step to increase our organization’s focus around fewer multi-platform global brand opportunities that are integrating play through digital and analog experiences.”
Hasbro's entertainment and licensing segment net revenues increased 12% to $181.4 million compared to $162.2 million in 2011. The segment continued to benefit from the sale of television programming in all formats in the U.S. and internationally offset by lower movie-related revenues. The entertainment and licensing segment reported 24% operating profit growth to $53.2 million compared with $42.8 million in 2011.
Among the company's core toy categories, net revenue for the boys segment was down 13% as sales of Transformers and Beyblade products fell. However Marvel branded products were strong sellers.
Net revenues in the games category increased 2% to $1.19 billion. Magic: The Gathering, Twister, Battleship and boys action gaming all helped the category grow in 2012.
The girls category net revenues increased 7% to $792.3 million, aided by Furby and My Little Pony.
Net revenues in the preschool category declined 5% to $527.6 million.