TRANSFORMERS: SALES IN DISGUISE
Robots, Nerf guns and superheroes helped bring Hasbro a 21-per-cent increase in sales in their fourth quarter, helping revenue climb nearly 7 per cent,
PAWTUCKET, R.I.— The appetite for superheroes and robots in disguise led to a healthy fourth quarter at Hasbro even as a shift toward electronics has challenged the traditional toy industry.
Hasbro said Monday that sales of toys geared toward boys increased 21 per cent, with a strong showing from Transformers, Nerf and Marvel.
The company boosted its quarterly dividend and increased the number of its own shares targeted for buybacks.
There were two hurdles during the quarter: the strong U.S. dollar and declining sales in toys for girls. Hasbro’s rival Mattel, which makes the Barbie doll, has seen a similar decline recently. Hasbro said revenue would have climbed 7 per cent if it weren’t for a $93.4 million (U.S.) drag from foreign exchange.
Net income reached $169.9 million, or $1.34 per share, for the quarter. Earnings adjusted for pre-tax gains came to $1.22 per share, which was in line with Wall Street expectations, according to a poll by Zacks Investment Research.
Revenue climbed to $1.3 billion from $1.28 billion, but that was still short of the $1.34 billion analysts were looking for, according to Zacks.
Sales of merchandise for girls fell 10 per cent during the quarter and game sales declined 4 per cent.
Last month Mattel Inc. said that weak Barbie doll sales weighed down its fourth quarter. That company’s chairman and CEO resigned.
Hasbro in September wrested the rights from Mattel for the dolls of Disney’s blockbuster Frozen, and will begin producing them next year.
For 2015, Hasbro reported a profit of $415.9 million, or $3.20 per share. Its adjusted profit was $3.15 per share, which was better than expected. Revenue was $4.28 billion and, like the quarter, fell a bit short of projections.
Hasbro raised its quarterly dividend by 7 per cent to 46 cents per share, from 43 cents per share.