Frozen and Disney Princess Dolls Drive Hasbro Sales Beat

Hasbro Inc. said sales of Disney Princess and Frozen dolls helped strengthen better-than-expected revenue and profit numbers.

Hasbro said its first full quarter of its recently acquired, and closely watched, line of reimagined Disney Princess and Frozen dolls helped boost the girls segment, with segment sales increasing 41% to $165.4 million. In 2014, Hasbro won the rights to the popular dolls away from toy-making rival Mattel Inc.

Hasbro's deep lineup of Star Wars-themed toys tied to the release of the latest film in the series helped lead to a 24% increase in its boys segment. The preschool category increased 12%, boosted by Play-Doh, which celebrated its 60th anniversary in February.

Hasbro's games segment decreased 1.9%. Gains of Pie Face and Yahtzee were offset by declines in other brands.

The boys category was further helped by the Neft and Yokai Watch brands while the girls category was helped by Disney's Descendants and Baby Alive brands.

Sales in the U.S. and Canada rose 28% to $443.6 million. International segment revenue increased 13% to $345 million. In the region, all four product categories posted growth. Emerging markets revenues declined 7% in the quarter while Europe grew 14% and Asia Pacific jumped by a quarter.

For the quarter, the company posted a profit of $48.8 million, or 38 cents a share, up from $26.7 million, or 21 cents a share, a year prior. Revenue increased 16% to $831.2 million.

Analysts polled by Thomson Reuters had forecast adjusted per-share earnings of 24 cents a share on revenue of $777 million.

Shares, which have increased 14.4% in the last three months, were inactive in premarket trading.

Hasbro's strength comes as the toy industry has experienced a renaissance lately, shrugging off concerns that playing with traditional toys had ceded ground to children tapping away at smartphones and tablets. Toy sales rose 6.7% in the U.S. last year, according to research firm NPD Group Inc., the fastest rate in more than a decade.

Mattel reports its results on Wednesday. While it has struggled recently, under a new chief executive Mattel has been implementing concrete steps to bolster its operations from improving ties to retailers and patching up relationships with important partners.

Write to Austen Hufford at [e-mail]

(END) Dow Jones Newswires

April 18, 2016 08:05 ET (12:05 GMT)

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