Hasbro reports 3Q 43% profit gain on 7% revenue increase

HASBRO INC. reported third-quarter revenue on Monday of $1.47 billion, a 7 percent increase compared with the prior year period, as profit grew 42.6 percent to $180.5 million.
HASBRO INC. reported third-quarter revenue on Monday of $1.47 billion, a 7 percent increase compared with the prior year period, as profit grew 42.6 percent to $180.5 million.

PAWTUCKET – Hasbro Inc. reported third-quarter net income of $180.5 million on revenue of $1.47 billion, fueled by growth in the boys category, which saw revenue climb 22 percent, thanks to sales of Nerf, Transformers, Marvel and Star Wars products.
Third-quarter profit represented an increase of 42.6 percent on the same 2013 period. Earnings per diluted share totaled $1.40, compared with 96 cents per diluted share in the 2013 third quarter. Excluding a pre-tax charge of $11.6 million, or 0.06 percent per diluted share, related to the restructuring of the company’s investment in the Hub Network joint venture, adjusted net earnings for third quarter 2014 were $187.8 million.
Revenue for the period increased 7.3 percent in the 2013 third-quarter total of $1.37 billion, led by the boys segment total of $478.5 million, compared with $392 million the prior year.
Revenue from games increased 2 percent to $395.2 million with strong sales of Magic: The Gathering, Monopoly, Simon Swipe and Operation. Girls revenue rose 5 percent to $407.7 million, driven by My Little Pony, Play-Doh Dohvinci, Littlest Pet Shop and Nerf Rebelle sales. Preschool revenue declined 7 percent, however, to $188.5 million, as core Playskool and Sesame Street product sales declined.
“Our third-quarter results continued to reflect the momentum we are building in our franchise brands and key partner brands, the positive results of our investments globally and the benefits of leading with compelling content and storytelling,” Brian Goldner, Hasbro’s president and CEO, said in a statement. “In the third quarter, we grew revenues across all operating segments, delivered improved profitability and took strategic steps to grow our brand portfolio and content delivery over the longer term, including forming a new strategic merchandising relationship with Disney Consumer Products for the globally popular Disney Princess and Frozen properties.”
Deborah Thomas, Hasbro’s chief financial officer, said in a statement that the third-quarter results were “indicative of Hasbro’s strong financial and competitive position.”
“In this environment of growth and financial strength, we remain focused on improving profitability, returning cash to our shareholders and investing back into our business, through investments in innovation, systems and portfolio expansion across our blueprint,” Thomas said.
Hasbro shares were trading at $54.95 Monday morning. On Friday, shares closed at $53.85.

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