The outlook of the toy industry may seem a bit shaky as US consumer confidence has yet to perk up, but Pawtucket, Rhode Island-based Hasbro’s Q3 results have been buoyed a bit by strong performances on the licensed plaything front.
The toyco’s Entertainment and licensing division brought in the largest net revenues at US$41.6 million, more than doubling last year’s US$18.3 million Q3 take. Net revenues overall, however, were down 2% to US$1.28 billion for the quarter, as compared to US$1.3 billion in the previous year. Meanwhile, net earnings were also up 11% to US$150.4 million from US$138.2 million in 2008.
President and CEO Brian Goldner noted that the growth came from the investments in the company’s JV with Discovery Communications.
Despite the increases, the toyco was not immune to the economic downturn, as net revenues from the US and Canada were down to US$791.9 million from US$821 million in 2008. Though there was a strong performance in the boys category, it was offset by declines in girls, preschool and in games and puzzles category.
International segment net revenues also took a hit, dropping to US$444.1 million from US$460.6 million in 2008. Growth in boys and preschool categories internationally were offset by declines in girls and games and puzzles. Rises in the entertainment and licensing segment were brought about by strong showings from Transformers and G.I. Joe.