JurassicWorldToy
Consumer Products

A strong US dollar, demand for dinos shape Hasbro’s Q2

The box-office success of Jurassic World, as well as preschool toys, contributed to a 1% rise in North American sales during Hasbro's second quarter of 2015. Notwithstanding a negative US$71.5-million impact from foreign exchange, the company saw revenues increase by 5%.
July 20, 2015

The box-office success of Jurassic World, as well as preschool toys, contributed to a 1% rise in North American sales for Hasbro’s second quarter of 2015. However, a strong US dollar drove overall net revenues down 4% for the Rhode Island-based toyco.

Notwithstanding the negative US$71.5-million impact from foreign exchange, the company saw a 5% increase in revenue.

Net revenues for Q2 were US$797.7 million versus US$829.3 million a year ago. Earnings were US$41.8 million, compared to US$33.5 million in 2014, which included an unfavorable tax adjustment of US$13.8 million.

While growth within boys and preschool categories helped North American sales, global sales fell 9% in Q2 to US$362.8 million. Growth in Latin America was offset by declines in Europe and Asia Pacific, and emerging markets revenues declined by 11% for the quarter. Excluding an unfavorable US$69.5 million impact of foreign exchange, overall net revenues in the international and emerging markets segments grew by 9%.

The category winner for the quarter was preschool, with a 14% sales jump to US$118.1 million, following growth in Play-Doh and Jurassic World products.

Meanwhile, entertainment and licensing sales remained unchanged at US$47.6 million, where segment performance was driven by entertainment-backed licensing revenues.

Boys sales were also relatively flat, with a 1% increase to US$340.4 million, thanks in part to toy shipments of Jurrasic World, Marvel and Star Wars-themed products.

Games category revenues declined by 6% in the quarter to US$211.6 million, with additional sales declines in Angry Birds products, among other factors.

Girl-skewing toys experienced the largest losses this past quarter, experiencing a 22% drop to US$127.5 million in sales. Disappointing Furby sales led the decline, along with fewer sales for My Little Pony and Nerf Rebelle toys. Growth in Play-Doh Dohvinci and Disney Descendants partially offset some of these losses.

Slumping sales within girls has been a continuing theme this year (for competitor Mattel, too) as it was the only category to experience a decline in net revenues during Hasbro’s last quarter, with a 16% drop to US$117.1 million.

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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