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.