While boys toys still generated the largest chunk of net revenue in Q1 for Hasbro, the Pawtucket, Rhode Island-based toy giant saw its biggest gains in girls products, which drove a 20% net revenue increase to US$831.2 million in the quarter.
Q1 revenue in the girls category skyrocketed by 41% to US$165.4 million, followed by the boys category, which registered a 24% increase to US$336.9 million. Preschool also made double-digit gains, shooting up 11% to US$97.8 million. Games, on the other hand, was the only category to have a setback, falling 2% to US$231.1 million.
Growth in the girls category was attributed to the launch of Disney Princess Frozen fashion and small dolls, as well as Disney Descendants (pictured) and Baby Alive products. In the boys category, key drivers were Nerf, Star Wars and Yo-Kai Watch. Meanwhile, Play-Doh propelled preschool sales. On the games front, Pie Face, Yahtzee and Duel Masters did well once again, but their performance was unable to offset declines from other games.
When looking at Hasbro’s major business segments, the US and Canada branch saw the biggest Q1 increase at 28% to US$443.6 million in net revenue. Growth in the boys, girls and preschool categories in the region more than offset a decline in the games category.
Internationally, net revenues climbed by 13% to US$345 million, thanks to growth in all four product categories—boys, games, girls and preschool. On a regional level, Asia Pacific and Europe grew by 25% and 14%, respectively, while Latin America and emerging markets declined by 3% and 7% in the quarter.
One of the biggest surprises comes from Hasbro’s entertainment and licensing segment, which saw net revenues drop by 30% to US$42.5 million from US$60.6 million in Q1 2015. The category was the biggest winner in the company’s full-year annual report in 2015, posting double-digit growth. However, last year’s first quarter did benefit from a multi-year streaming deal for Hasbro Studios TV programming.