Hasbro Inc.'s (HAS) fourth-quarter profit fell 15% as declining
sales in the entertainment and licensing segment more than offset
rising sales in the girls and international categories.
The toy maker's bottom line has been improving in the past few
quarters as overall economic conditions stabilized and after the
company reined in expenses. Last quarter the company posted higher
earnings on sales improvement in most of its toy categories.
Costs from the company's October launch of its Hub children's
television channel with Discovery Communications Inc. (DISCA) also
weighed on earnings. The company said last year it expected total
capital spending on the channel would pressure earnings this year
by 25 cents to 30 cents a share.
Larger rival Mattel Inc. (MAT) last week reported
better-than-expected earnings, though it entered the first quarter
with significantly higher inventory over last year.
Hasbro reported a fourth-quarter profit of $140 million, or 99
cents a share, down from $165.6 million, or $1.09 share, a year
earlier. Adjusted earnings per share were $1.02, up from 99 cents
the prior year.
Analysts polled by Thomson Reuters most recently expected a
per-share profit of 92 cents.
Revenue fell 7% to $1.28 billion, partly because of currency
changes, which shaved the top line by $23.5 million. The company
last month projected revenue of $1.3 billion.
Gross margin narrowed to 15.7% from 17.7%.
Girls' product sales grew 10%, while Hasbro's boys' product
segment edged down 1% revenue-wise.
The entertainment and licensing segment, which incurred earlier
losses from disappointing sales of Hasbro's Transformers and G.I.
Joe film-branded products, still posted a 14% sales decline in the
fourth quarter.
International sales rose 12% and partially offset a 20% drop in
revenue from the U.S. and Canada.
Shares of Hasbro, which in December moved to Nasdaq from the New
York Stock Exchange, closed at $44.82 Friday and were inactive
premarket. The stock has gained 46% over the past year.
-By Drew FitzGerald, Dow Jones Newswires; 212-416-2909;
Andrew.FitzGerald@dowjones.com;