Hasbro income falls on boy, preschool toys

Hasbro's net income fell in the third quarter heading into the holiday shopping season. Sluggish sales for toys aimed at boys and  preschoolers dragged down Hasbro profits. 

Seth Wenig/AP/File
In this 2011, file photo, toys by Hasbro are displayed in New York. Hasbro Inc. announced Monday, Oct. 22, 2012 that its third-quarter net income was down by 4 percent, dragged down by slow toy sales for boys and preschoolers.

Unfavorable foreign exchange rates and weak sales in Europe and the Asia Pacific region pulled toymaker Hasbro's third-quarter net income down by 4 percent.

But the Pawtucket, R.I.-based company's adjusted results topped Wall Street's forecasts on Monday, and it remains confident heading into the critical holiday season, which is when toy makers can earn up to 40 percent of annual revenue.

"We are entering the holiday season with exciting, innovative products, including some of the hottest toys in the market and a tremendously successful Marvel line," Chief Financial Officer Deborah Thomas said in a statement.

For the three months ended Sept. 30, Hasbro Inc. earned $164.9 million, or $1.24 per share. That compares with $171 million, or $1.27 per share, a year earlier.

Removing the impact of the stronger dollar, earnings were $1.28 per share. A reduction in the number of outstanding shares through repurchases helped boost earnings per share by about 2 cents.

Analysts, on average, expected profit of $1.20 per share, according to FactSet.

Revenue slipped 2 percent to $1.35 billion from $1.38 billion. Revenue totaled $1.39 billion excluding unfavorable foreign exchange rates. Wall Street forecast $1.38 billion, on average.

Revenue in the U.S. and Canada edged up 1 percent, helped by solid sales of girls' products and games. This was somewhat offset by weaker sales of preschool toys and boys' products. Overseas revenue fell 7 percent, hurt by the stronger dollar.

Revenue for the entertainment and licensing segment declined 7 percent, dragged down by lower movie-related revenue.

The strongest product category for the quarter was girls' products, with revenue up 17 percent. Sales were helped by the launches of the latest Furby toys and One Direction products. New products available for the holiday season — including Baby Alive Baby Wanna Walk, Furreal Friends Baby Butterscotch and Bouncy My Happy to See Me Pup also posted strong results in the period. Well-known brands including My Little Pony and Easy-Bake also did well.

The softest category was boys, which was hurt by expected drop-offs in sales of Transformers and Beyblade products.

Hasbro said that it still expects its full-year earnings per share and revenue to climb, when stripping out the impact of foreign exchange rates.

Last week, rival Mattel Inc. reported its third-quarter net income climbed, buoyed by strong sales of American Girl dolls and Fisher-Price toys.

You've read  of  free articles. Subscribe to continue.
Real news can be honest, hopeful, credible, constructive.
What is the Monitor difference? Tackling the tough headlines – with humanity. Listening to sources – with respect. Seeing the story that others are missing by reporting what so often gets overlooked: the values that connect us. That’s Monitor reporting – news that changes how you see the world.

Dear Reader,

About a year ago, I happened upon this statement about the Monitor in the Harvard Business Review – under the charming heading of “do things that don’t interest you”:

“Many things that end up” being meaningful, writes social scientist Joseph Grenny, “have come from conference workshops, articles, or online videos that began as a chore and ended with an insight. My work in Kenya, for example, was heavily influenced by a Christian Science Monitor article I had forced myself to read 10 years earlier. Sometimes, we call things ‘boring’ simply because they lie outside the box we are currently in.”

If you were to come up with a punchline to a joke about the Monitor, that would probably be it. We’re seen as being global, fair, insightful, and perhaps a bit too earnest. We’re the bran muffin of journalism.

But you know what? We change lives. And I’m going to argue that we change lives precisely because we force open that too-small box that most human beings think they live in.

The Monitor is a peculiar little publication that’s hard for the world to figure out. We’re run by a church, but we’re not only for church members and we’re not about converting people. We’re known as being fair even as the world becomes as polarized as at any time since the newspaper’s founding in 1908.

We have a mission beyond circulation, we want to bridge divides. We’re about kicking down the door of thought everywhere and saying, “You are bigger and more capable than you realize. And we can prove it.”

If you’re looking for bran muffin journalism, you can subscribe to the Monitor for $15. You’ll get the Monitor Weekly magazine, the Monitor Daily email, and unlimited access to CSMonitor.com.

QR Code to Hasbro income falls on boy, preschool toys
Read this article in
QR Code to Subscription page
Start your subscription today