NerfRebelle
Consumer Products

Girls rule Hasbro’s first quarter of 2014

With sales of its girl-skewing toys up 21%, Rhode Island-based Hasbro swung to profitability during the first quarter of 2014. Hasbro's results tell a different story from its closest competitor, Mattel, which posted quarterly net losses of US$11.2 million last week after a 14% decline in Barbie sales.
April 21, 2014

With sales of its girl-skewing toys up 21%, Rhode Island-based Hasbro swung to profitability during the first quarter of 2014.

Overall company revenues were up 2% to US$679.5 million, and earnings were US$32.1 million compared to losses of US$6.7 million in 2013.

The results are also a reflection of particular improvements across the company’s Franchise Brands, Emerging Markets and Entertainment and Licensing segments. The latter saw revenues increase 13% to US$34.9 million, which were greatly impacted by revenues from Backflip Studios. Last July, Hasbro took a majority stake in the Colorado-based mobile developer in a US$112 million cash outlay gave the company 70% ownership of the studio.

Revenue growth in lifestyle licensing was offset by lower entertainment revenues during the quarter.

Hasbro’s domestic revenues dipped 1% to US$337.7 million. These results were impacted by significant growth within the Girls category, which was offset by softness in the Boys (up 2%, despite Beyblade declines), Games (down 4%) and Preschool (also down 4%) segments. However, both Boys and Girls categories stood strong on the international stage, resulting in a 5% spike in global revenues to US$305.5 million.

It looks like it’s taking the ponies – and some Nerf – to pull the weight within the company’s strong Girls category. My Little Pony, My Little Pony Equestria Girls and Nerf Rebelle have all proven to be the most major sales-drivers.

Hasbro’s results tell a different story from its closest competitor, Mattel, which last week posted quarterly net losses of US$11.2 million, which were impacted by a 14% decline in Barbie sales. Overall, worldwide net sales were down 5% for Mattel to US$946.2 million.

However, Hasbro and Mattel closed out 2013 on a similar playing field, as both companies reported sluggish toy sales primarily due to a decreased appetite for boys’ toys. Still, Hasbro’s Girls category increased 26% to reach a record US$1 billion in revenues last year thanks to success of Furby and – once again – My Little Pony.

About The Author
Wendy is Kidscreen’s Associate Editor. When she’s not sourcing material for the brand's daily email newsletter, she’s researching, writing and connecting with others about the newest trends in digital media. Contact Wendy at wgoldman@brunico.com.

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