While faring somewhat better than rival Mattel, Hasbro did see revenue drop in Q1 2009.
The world’s number-two toyco posted net earnings of US$19.7 million versus the US$37.5 million in Q1 2008, with net revenues dropping to US$621.3 million, compared to US$704.2 million in the same period last year.
President and CEO Brian Goldner stated that the revenue declines were expected, driven by the general economic downturn, foreign exchange rates and retailers reducing inventory levels. However, he says the company expects a boost in the latter half of the year, particularly from movie releases Transformers: Revenge of the Fallen, G.I. Joe: Rise of the Cobra and X-Men Origins: Wolverine.
US and Canada segment net revenues came in at US$404.5 million versus US$428.5 million in Q1 2008, reflecting growth sales of Star Wars, Playskool and Nerf brands and board games. Littlest Pet Shop, Transformers and Marvel lines, however, did experience some declines.
Meanwhile, the international segment net revenues came in at US$189.2 million, down from US$248.3 million the previous year, marking sales declines on Transformers, My Little Pony, Action Man, In the Night Garden and board games. Star Wars and Nerf toy sales, on the other hand, have been growing.