Hasbro reports 1Q revenue increase, beats analyst projections

Hasbro
HASBRO'S NERF ENERGY Game Kits were distributed to members of the Boys & Girls Clubs of Providence and Pawtucket recently, as part of encouraging them to increase their physical activity, thanks to a team effort by UnitedHealthcare, Hasbro and Patrick Pass, former New England Patriots fullback and three-time Super Bowl champion. / COURTESY HASBRO

PAWTUCKET – Hasbro Inc. reported an increase in revenue in the first quarter that ended March 29, boosted by 22 percent revenue growth in the preschool segment.

The toymaker reported net revenue of $713.5 million, an increase of 5 percent compared with $679.5 million during the prior year quarter. Without a $62.6 million foreign exchange impact, revenue grew 14 percent, the company said.

Profit dropped nearly 17 percent, however, to $26.7 million, or 21 cents per diluted share, compared with $32.1 million, or 24 cents per diluted share, during the year-ago period.

But profit increased 43 percent, when first-quarter 2014 profit was adjusted to $18.6 million, or 14 cents per diluted share, excluding $13.5 million, or 10 cents per diluted share, of favorable tax adjustments last year.

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Hasbro’s first-quarter results topped average analyst estimates of 8 cents per share.

Brian Goldner, Hasbro’s president and CEO, said that 2015 “is off to a good start with continued momentum in our business, led by growth in all of our franchise brands and the underlying strength in demand across international markets, including the emerging markets.”

“For the first quarter, we grew revenue, improved profitability and delivered growth in adjusted net earnings despite significant foreign exchange headwinds. While the first quarter is the least significant quarter of the year, the global Hasbro team delivered a strong start to the year,” Goldner said.

Deborah Thomas, Hasbro’s chief financial officer, said that the first-quarter results “keep us on track to achieve our previously slated targets.”
The U.S. and Canada segment’s revenue increased 2 percent to $345.7 million, compared with $337.7 million during the year-ago quarter. Growth was led by the boys, games and preschool categories, and was partially offset by a decline in the girls category.
International segment revenue was flat at $305.7 million, and entertainment and licensing grew 74 percent year over year to $60.6 million in the first quarter.

Revenue growth was significant in the preschool category, which increased 22 percent to $88.1 million, led by Play-Doh, Playskool Heroes, Jurassic World and Transformers Rescue Bots. The boys segment increased 10 percent to $272.6 million driven by franchise brands Transformers and Nerf, while games rose 7 percent to $235.6 million, fueled by franchise brands such as Magic: The Gathering and Monopoly.

The girls category dropped 16 percent in the first quarter. The company blamed sales declines in Furby, Furreal Friends and Easy Bake products, but said growth in Littlest Pet Shop and Play-Doh DohVinci partially offset those declines.

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