With competing toymaker Mattel off to a solid start in 2013, Rhode Island-based Hasbro saw its revenues rise 2% in its first quarter to US$663.7 million from US648.9 million a year ago. While sales among boy-targeting products dropped 20%, girls toys and a revamped games category were up 23% and 26%, respectively.
The company’s losses widened to US$6.7 million in Q1 2013 from US$2.6 million for the same period last year. Earnings for the quarter increased 30% to US$6.6 million, which excludes pre-tax charges of US$28.9 million associated with a previously announced cost-savings initiative expected to save the company US$100 annually by 2015.
Sales for Hasbro’s US and Canada segment increased 4% to US$342.1 million, compared to US$329.0 million in 2012. Meanwhile, International segment sales remained essentially flat at US$289.8 million, compared to US$289.7 million last year. Revenues in the International division reflect growth in Latin America and Asia Pacific.
Sales in the Boys category decreased 20% to US$242.8 million, while Marvel, Nerf and G.I. Joe brands still sustained product revenue growth in the quarter. Alternatively, the Girls category continued its year-end growth trend, increasing 23% in the quarter due to gains among Furby, My Little Pony and One Direction products.
The Games category is also staying strong, posting 26% revenue growth in the first quarter. Propelling sales were games and products based on Angry Birds Star Wars, Magic: The Gathering and Transformers.
The Preschool category also grew in the first quarter, increasing 8% to US$75.2 million. Play-Doh and Playskool Heroes brands led the charge in that segment.
Over in Entertainment and Licensing, segment sales increased 5% to US$30.8 million over US$29.3 million in 2012, driven primarily by television programming sales.