Even with retailers’ attempts to blur gender lines at retail, the boys certainly defined Hasbro’s third quarter.
Star Wars and Jurassic World products propelled a 24% hike in revenue for the Rhode Island-based toyco’s boys division, while sales of girl-skewing toys dropped 28% due to soft Furby and My Little Pony sales.
Overall net revenues for the third quarter 2015 were flat at US$1.47 billion compared to 2014. But absent a negative US$132.4 million impact from foreign exchange, net revenues increased by 9%. Profits for Q3 2015 rose by 15% to US$207.6 million, up from US$180.5 million over the same period in 2014.
Sales within US and Canada increased by 5% to US$803.8 million, compared to US$764.3 million last year, but the gains were offset by continued declines – by 6% to US$612.6 million – within the company’s international segment, as the negative impact of foreign currency resulted in revenue declines in Europe, Latin America and Asia Pacific. (Overall emerging markets sales declined by 15% in the quarter.)
Entertainment and licensing category sales dipped 2% to US$52.1 million, driven primarily by a difficult comparison with Transformers-driven sales registered in Q3 2014.
The boys sector, meanwhile, got a significant boost from the retail launch of Star Wars: The Force Awakens products, along with growth in Nerf sales, as well as the positive contribution from Jurassic World toys. The 28% drop in girls product sales – to US$294.8 million – was partially offset by growth in Play-Doh Dohvinci and Disney Descendants-themed toy sales.
Games sales declined by 8% in the quarter to US$363.5 million, while the preschool category saw sales jump by 17% to US$219.6 million. Growth of Play-Doh, along with shipments of Playskool Heroes Star Wars Galactic Heroes and Jurassic World, as well as the launch of Playskool Friends My Little Pony, more than offset sales declines in core Playskool products.
Hasbro isn’t the only toyco experiencing declines within the girls sector. Mattel last week reported a 4% fall in Barbie sales, marking the eighth straight quarter of falling sales for the iconic doll property. And aside from Barbie, worldwide gross sales for other girls brands were down 20%, following a 6% decrease in the company’s Q2.