Last Updated on December 23, 2019 by Danielle
Hasbro reports revenue growth in US and Canada, driven by Transformers, Nerf, and Monopoly.
In stark contrast to Mattel’s rather disheartening revenue losses reported last week, Hasbro has reported a 2% increase in revenues for the first quarter of 2017 in the United States and Canada. Unlike the drop in shares for Mattel, Hasbro’s share value has been boosted.
Hasbro has credited Transformers, Nerf, and Monopoly for driving their positive performance. Hasbro owns powerhouse brands like Disney Princesses, Disney Frozen, Play-Doh, and Monopoly. Last year Star Wars and Disney dolls fueled Hasbro’s performance. Previously, we had heard ‘girl power’ also was attributed to Hasbro’s $5 billion success story.
Even though sales in the United States and Canada have shown positive growth, sales in other parts of the world were relatively flat. In fact, in Europe, Hasbro experienced a 4% decline in performance.
Brian Goldner, Chief Executive Officer of Hasbro, mentioned that these results met company expectations, positioning the company for growth in the coming years.
Diving into report details, net earnings increased to $69 M and first quarter revenue hit $850 M. In comparison, in 2016 revenue was $831 for the first quarter. This represents a $19 M increase, or 2% increase, in revenue year over year. Comparing Hasbro and Mattel’s first quarter results, Hasbro had $850 M in revenue versus Mattel with $736 M. Hasbro generated $114 M more than Mattel in the first quarter. Similarly, comparing net earnings Hasbro was in the green with $69 M compared with Mattel’s big loss of $113 M. Clearly, Hasbro outperformed Mattel for the first quarter of 2017.
Hasbro executives stated that their operating profit decline was the result of increased expenses, product assortment changes, and declining revenue from the Magic: The Gathering line. Given their awareness of the situation, they are more likely to position the company for international growth in the next three quarters.