Hasbro posts 1Q profit, sales of girls’ toys rise
PAWTUCKET, Rhode Island (AP) — Hasbro returned to profitability in its first quarter, driven by sales of girls’ toys such as My Little Pony and Nerf Rebelle. The prior-year results were dragged down by restructuring charges.
Its latest earnings topped Wall Street estimates but revenue was short of what analysts expected.
Sales of girls’ products rose 21 percent. Sales of My Little Pony Equestria Girls dolls also resonated with customers.
The boys’ category reported a 2 percent increase in sales, helped by Nerf and Marvel products. This was partially offset by weakening Beyblade sales.
Game sales fell 4 percent, hindered partly by declining sales of trading card game Duel Masters.
Sales of preschool products slipped 4 percent due to soft sales of core Playskool items.
Sales for the entertainment and licensing division rose 13 percent thanks to the inclusion of Backflip Studios. International sales increased 5 percent, led by Europe and Latin America. In the U.S. and Canada, sales edged down 1 percent.
The Pawtucket, Rhode Island-based company earned $32.1 million, or 24 cents per share, for the period ended March 30. That compares with a loss of $6.7 million, or 5 cents per share, a year earlier.
Stripping out favorable tax adjustments of 10 cents per share, earnings were 14 cents per share.
The year-ago period was pulled down by restructuring charges totaling 14 cents per share. It also had favorable tax adjustments of 4 cents per share a year ago.
Analysts surveyed by FactSet expected earnings for the latest period of 10 cents per share, on average.
Revenue edged up 2 percent to $679.5 million from $663.7 million, but missed Wall Street’s estimate of $690.1 million.
Last week rival Mattel Inc. reported an unexpected first-quarter loss, hurt by soft Barbie sales and markdowns to clear excess inventory.
Hasbro Inc. shares finished at $54.61 on Friday. Its shares are down slightly so far this year.