Star Wars' Is the Force Behind Strong Hasbro Sales -- Update
February 08 2016 - 12:00PM
Dow Jones News
By Paul Ziobro and Austen Hufford
Hasbro Inc. reported strong revenue during the holiday period,
helped by a surge in demand for lightsabers, action figures and
other toys tied to "Star Wars."
Hasbro's deep lineup of toys related to the blockbuster film led
to a 35% sales increase in its boys segment, helping overall
revenue rise 13% to $1.47 billion.
Chief Executive Brian Goldner said the company's overall "Star
Wars" business for the year was "very similar" to the nearly $500
million the company made in 2005 when the last installment of the
movie hit theaters. And the company forecasts "Star Wars" sales
this year to be around that level again.
Hasbro shares rose 1.5% in early trading to $75.23, bringing
year-to-date gains to 11.8%.
Walt Disney Co.'s "Star Wars" was a boon to the toy industry
last year, as collectors and kids clamored for new toys tied to the
newest feature film in a decade. It was the largest toy property in
2015, helping the overall industry grow toy sales 6.7% last year,
according to the NPD Group Inc., the best results in more than a
decade.
With "Star Wars" performing well, Hasbro is trying to bolster
its girls division which reported a 17% decline last year. It is
seeking to add more Disney licenses geared toward girls. Hasbro
recently started selling Disney's princess and "Frozen" dolls,
having snatched the license from rival Mattel Inc.
The launch is being closely watched to see if Hasbro, which
historically establishes itselfs with boy-focused toys like G.I.
Joe action figures and Nerf blasters, can do more with the coveted
property than Mattel.
Mr. Goldner on Monday said Hasbro would most likely stick to
small acquisitions that will help it achieve its long-term
strategic goals. "We think we're well positioned from a brand
standpoint," he said. His comments come after Bloomberg reported
last week that Hasbro approached its larger rival last year to
discuss a possible merger. Mr. Goldner didn't specifically address
that report.
Hasbro's overall earnings rose 3.4% to $175.8 million. Sales in
the U.S. and Canada rose 29% to $690.8 million. The effect of
foreign-exchange hurt the international segment, which posted a
more modest gain of 2.9% to $690.8 million.
Write to Paul Ziobro at Paul.Ziobro@wsj.com and Austen Hufford
at austen.hufford@wsj.com
(END) Dow Jones Newswires
February 08, 2016 11:45 ET (16:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Ford Motor (NYSE:F)
Historical Stock Chart
From Aug 2024 to Sep 2024
Ford Motor (NYSE:F)
Historical Stock Chart
From Sep 2023 to Sep 2024