Star Wars Lifts Hasbro’s Q4 Results

PAWTUCKET: Hasbro reported strong fourth-quarter profit, as Star Wars and Jurassic World merchandise lifted sales.

Fourth-quarter 2015 net revenues increased 13 percent to $1.47 billion compared to $1.30 billion in 2014. Excluding a negative $128.1 million impact from foreign exchange, fourth-quarter 2015 revenues increased 23 percent.

Net revenues for the full-year 2015 increased 4 percent to $4.45 billion compared to $4.28 billion in 2014. Excluding a negative $394.5 million impact from foreign exchange, 2015 revenues increased 13 percent.

Full-year 2015, boys’ category revenues increased 20 percent to $1.78 billion. Franchise brand Nerf revenues increased along with Star Wars, Jurassic World and Marvel. This growth more than offset the decline in Transformers, which faced difficult comparisons versus 2014’s theatrical release of Transformers: Age of Extinction. The boys’ category grew 30 percent absent the impact of foreign exchange.

Girls’ category revenues declined 22 percent in 2015 to $798.2 million. Furby represented the largest revenue decline. Core My Little Pony revenues increased, but were offset by declines in Equestria Girls. Revenue growth in Play-Doh DohVinci as well as the introduction of Disney’s Descendants partially offset category revenue declines. The girls’ category declined 13 percent absent the impact of foreign exchange.

Preschool category revenues increased 17 percent to $596.8 million for the full-year 2015. Franchise brand Play-Doh contributed the greatest revenue growth, further supported by gains in Jurassic World, Star Wars and the launch of Playskool Friends My Little Pony. The preschool category grew 28 percent absent the impact of foreign exchange.

“Hasbro’s global teams delivered another year of revenue, operating profit and earnings growth supported by our diversified brand portfolio, story-led initiatives and strong global execution,” said Brian Goldner, Hasbro’s chairman, president and CEO. “On a constant currency basis, our growth accelerated in 2015 and we began 2016 with positive momentum and good visibility to growth drivers for this year and beyond. In 2015, we overcame an unprecedented impact from foreign exchange translation, both on the top and bottom line, while driving strong consumer demand and engagement as well as gaining share in markets around the world.”

“In 2015, the benefits of our Brand Blueprint strategy were evident in the strength of our financial results,” added Deborah Thomas, Hasbro’s chief financial officer. “As we continue investing in differentiating capabilities, we are seeing new, higher levels of sustainable gross and operating margins. Consumers are recognizing and embracing the innovation our global teams are delivering while we are also improving the efficiency of our organization. Margin improvement and the associated cash flow are delivering enhanced shareholder value as we continue investing in the future potential of Hasbro.”