Disney princess, Frozen dolls boost Hasbro in 2Q

HASBRO'S Disney Frozen doll line helped boost second-quarter sales. Pictured is the Disney Frozen Elsa's Magical Story Cape doll, which retails for $19.99. / COURTESY HASBRO INC.
HASBRO'S Disney Frozen doll line helped boost second-quarter sales. Pictured is the Disney Frozen Elsa's Magical Story Cape doll, which retails for $19.99. / COURTESY HASBRO INC.

PAWTUCKET – Boosted by sales of Disney princess and Frozen dolls and Baby Alive products, Hasbro Inc. posted a nearly 23 percent jump in profit in the second quarter, as well as a 10.2 percent increase in revenue.
Hasbro, in its second-quarter earnings report released Monday, said a 35 percent increase over the year in its girls segment, to $172.3 million from $127.5 million, fueled growth.
Profit for the quarter that ended June 26 grew to $49.4 million, or 41 cents per diluted share, compared with $40.3 million, or 33 cents per diluted share. The company beat analyst estimates of 39 cents per share.
Revenue was $878.9 million compared with $797.7 million. Excluding a negative $17.7 million impact from foreign exchange, second-quarter revenue climbed 12 percent.
“Hasbro’s focus on building brands, telling great stories and creating the best play experiences in toys, games, digital gaming and consumer products is driving strong consumer and retailer demand for our brands globally,” Brian Goldner, Hasbro’s chairman, president and CEO, said in a statement.
Deborah Thomas, Hasbro’s chief financial officer, said after a strong start to 2016, “the team delivered another high-quality quarter with revenue, operating profit and earnings growth.”
“We remain very focused on strategically investing to drive long-term growth and the execution of our strategy, while improving efficiencies and profitability over time. Our balance sheet is strong, including high-quality inventory to meet our expectations for the year, and $924 million in cash. We have the financial strength to invest in growing Hasbro for the long term while continuing our long-standing commitment of returning cash to shareholders,” Thomas said.
While the girls segment led the four product categories, the other three categories – boys, games and preschool – also posted revenue gains over the year.
Boys rose 4 percent to $355.1 million, thanks to Star Wars, Nerf and Yokai Watch sales, while games climbed 8 percent to $227.7 million due to the popularity of Pie Face, Simon, Yahtzee, Duel Masters and Bop-It. Preschool increased 5 percent to $123.9 million, led primarily by Play-Doh sales.
Among the major segments, the U.S. and Canada division saw revenue grow 11 percent to $425.9 million. International revenue also increased 11 percent to $401.1 million, while entertainment and licensing climbed 9 percent to $51.9 million.
Hasbro shares were trading at $80.17 as of 10:35 a.m., a decline of 5 percent; they opened at $83.71.

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