Toy maker Hasbro (HAS) on Monday reported a 43% jump in third-quarter net income, as the company reportedly higher sales of Transformers, Nerf and My Little Pony toys. Here’s what you need to know.
What you need to know: Hasbro’s earnings report was far stronger than Mattel (MAT), as the rival last week reported a 21% drop in Barbie sales as well as weaker demand for American Girl dolls and other major categories. In contrast, most of Hasbro’s business divisions reported growth. Sales of boys toys leapt 22% on growing demand for Nerf, Transformers and Marvel, while the girls category grew 5%. Games sales were up a more modest 2%. Total revenue increased 7% to $1.47 billion–matching analysts’ expectations.
The big number: Hasbro’s international sales leapt an impressive 11%, bolstered by strong growth in Latin America and Asia Pacific, as well as emerging markets. But sales were also higher in the mature markets of Europe and the U.S. and Canada. Much of Hasbro’s sales to boys gets a lift when there’s a major film release, and this year, the Transformers franchise had a major blockbuster in the movie theaters–“Transformers: Age of Extinction.” Marvel’s “Guardians of the Galaxy” was also a hit — and Hasbro also makes the toys based on that property.
What you might have missed: Sales of preschool items are really suffering in the toy aisle this year. The one weak spot in Hasbro’s results were the preschool division, with sales sliding 7% in the third quarter. For the first nine months of the year, preschool sales were down 5% to $364.8 million. Mattel’s preschool brand Fisher-Price has also reported a notable sales drop this year, down 14% for the first three quarters of 2014. That decline is partly due to lower birth rates in the U.S., especially as Millennials are putting off big life decisions like starting a family.
