Both companies expect strong results through the rest of 2017 with upcoming releases based on
Cars 3, Star Wars
In addition to Hasbro’s net revenue gains, the toy company also reported that net earnings for the first quarter increased 41 percent to $68.8 million, compared to $48.8 million in 2016. Within the company’s international segment, net revenues of $345.3 million were essentially flat compared to the $345.0 million reported in 2016.
In Hasbro’s entertainment and licensing segment, net revenues increased 24 percent to $52.7 million compared to $42.5 million in 2016. The segment’s operating profit also increased 108 percent to $11.3 million, compared to $5.4 million in 2016.
Furthermore, revenue growth in franchise brands (including Nerf, Transformers and Monopoly), Hasbro gaming (including Speak Out, Toilet Trouble, Bop-It and Dungeons & Dragons) and emerging brands (including Baby Alive and
were offset by expected declines in
"Our first quarter results are in line with our previously communicated expectations and we are well positioned to execute against 2017's rich content slate and diverse new initiatives," says Brian Goldner, chairman and chief executive officer, Hasbro. "Revenue grew in the quarter and we drove strong consumer takeaway at retail, both compared to a robust first quarter last year and with a shift of Easter into this year's second quarter. Over the coming quarters, we are supporting significant new initiatives including major theatrical films for both franchise and partner brands."
Meanwhile, Mattel reported that worldwide net sales and gross sales were down 15 percent versus last year’s first quarter. The company also reported that operating loss was $127 million, and adjusted operating loss was $122.1 million.
Within North America, net sales decreased by 23 percent and gross sales decreased by 24 percent. On the international front, net sales decreased by 2 percent and gross sales decreased 680 basis points.
Furthermore, worldwide gross sales for Mattel’s girls and boys’ brands were $441.1 million, down 16 percent from 2016. Worldwide gross sales for Barbie were down 13 percent compared to last year and worldwide gross sales for other girls’ brands were down 34 percent. The company also reported that worldwide gross sales for the entertainment business were down 27 percent.
For Fisher-Price brands, which includes the Fisher-Price Core, Fisher-Price Friends and Power Wheels brands, were $246.9 million, down 9 percent from 2016. However, worldwide gross sales for the Wheels category were up 4 percent and gross sales for Fisher-Price brands in the international region were up 1 percent to $113.8 million. This was offset by gross sales in the U.S., which were down 17 percent to $133.1 million.
Mattel also reported American Girl secured $82.2 million in sales for the first quarter, down 12 percent versus last year; and its construction and arts and crafts brands, which includes Mega Bloks and RoseArt, reported $38.5 million in worldwide gross sales for the first quarter, down 38 percent versus 2016.
"Our Q1 results were below our expectations due to the retail inventory overhang coming out of the holiday period, but we remain encouraged by strong performance at retail for our key core brands, including Barbie, Hot Wheels and Fisher-Price, as well as sustained momentum in high-growth markets like China," says Margo Georgiadis, chief executive officer, Mattel. "We are confident we have worked through the majority of this overhang and look forward to a strong launch of Disney's
theatrical release in the second quarter. While we have a lot of work to do to successfully position Mattel for the future, we see a clear runway to improving growth and profitability over time."
Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes, it’s completely free.