Hasbro, the second-largest US toymaker, saw profit growth in its first quarter with a significant boost in the sales of girls’ toys, which rose 16%.
The company reported net earnings for the quarter of US$58.9 million, an increase of US$39.2 million compared to US$19.7 million in 2009. Net earnings were $0.26 per diluted share excluding a favorable tax adjustment of US$21.2 million, or $0.14 per share. Net revenues were US$672.4 million, an 8% increase from US$621.3 million a year ago.
Worldwide net revenues for all major product categories grew in the quarter, as the Boys product category increased by 3% to US$236.9 million, the Games and Puzzles category increased 7% to US$227.0 million, the Girls category increased 16% to $129.4 million and the Preschool category grew 18% to US$78.9 million. The results reflect growth in Games & Puzzles, Girls and the Preschool category, which offset a decline in the Boys category. The Entertainment and Licensing segment saw net revenues of US$25.1 million compared to US$27.2 million in 2009, which can be attributed to lower licensing revenue in digital gaming. The Entertainment and Licensing segment reported an operating profit of US$9.4 million compared to US$13.6 million in 2009.
Hasbro’s Board of Directors has also authorized the company to repurchase an additional US$625 million of common stock. At the end of the quarter, US$63.8 million remained available in the prior share repurchase authorization.