Q3 Earnings Rise at Hasbro

PAWTUCKET: Net earnings for the third quarter at Hasbro were $207.6 million, compared to the $180.5 million delivered in the year-ago period.

Net revenues for the third quarter 2015 were $1.47 billion, flat with $1.47 billion in 2014. Absent a negative $132.4 million impact from foreign exchange, net revenues increased 9 percent.

“Strong global consumer demand across Hasbro franchise brands and partner brands drove continued momentum in our business,” said Brian Goldner, Hasbro’s chairman, president and CEO. “Brand innovation and superior market execution delivered not only underlying revenue growth, but higher profitability in a very challenging foreign exchange environment. We have innovative play experiences and marketing initiatives across brands, demographics and geographies this holiday season and remain focused on executing and investing for continued growth in future years.”

“Throughout 2015, our teams have positioned Hasbro to succeed in a very challenging environment,” said Deborah Thomas, Hasbro’s chief financial officer. “Tremendous innovation across brands and a strong entertainment slate has driven favorable product mix and underlying profit gains. Through the third quarter, pricing and hedging programs have protected our margins, but only through the strong execution of the team will we continue to deliver against our objective to expand operating profit margin over time. We also continue to invest in future innovation and systems, which positions us for long-term growth and shareholder value creation.”

The U.S. and Canada segment net revenues increased 5 percent to $803.8 million compared to $764.3 million in 2014. The segment’s results reflect growth in the boys' and preschool categories, which was partially offset by a decline in the games and girls' categories. International segment net revenues were $612.6 million compared to $649.3 million in 2014. Growth in the boys' and preschool categories were more than offset by declines in the games and girls' categories. Entertainment and licensing segment net revenues declined 2 percent to $52.1 million compared to $53.4 million in 2014. The decline in revenue was primarily driven by a difficult comparison with Transformers: Age of Extinction entertainment and licensing revenue last year.