Toy maker Hasbro Inc.'s (HAS) third-quarter earnings jumped 17%,
helped by a tax adjustment and improved girls' category sales,
though the boy-focused segment continued to report weaker
sales.
Hasbro's sales have been pressured by a weak economy in many
mature Western markets, as well as by the threat of mobile devices
that are competing with physical toys and changing how kids play.
Known for selling more boys' products, such as Transformers and
G.I. Joe toys, Hasbro has recently seen stronger demand for games
and girl-focused products like Furby and My Little Pony.
The company has undertaken cost cutting efforts to save $100
million in annual savings by 2015. Chief Executive Brian Goldner
said strategic steps to streamline Hasbro's organization are
increasingly important as the consumer environment remains
challenging in developed economies. The company, however, is
expanding its presence in faster-growing geographics. Emerging
markets reported 22% revenue growth in the latest period.
Boys' products sales, the biggest category by revenue, fell 17%
to $392 million. The games category's sales improved 5.9%, while
sales in the girls' category climbed 29%.
Overall, Hasbro reported a profit of $193 million, or $1.46 a
share, up from $164.9 million, or $1.24 a share, a year earlier.
The latest period included a favorable tax adjustment of 18 cents a
share, partially offset by restructuring and partial pension
settlement charges of three cents a share. Excluding these special
items, per-share earnings rose to $1.31 a share from $1.24. Revenue
improved 1.9% to $1.37 billion.
Analysts polled by Thomson Reuters had most recently forecast
per-share earnings of $1.29 and revenue of $1.34 billion.
U.S. and Canada sales were down 5% while international sales
jumped 11%.
Last week, rival toy maker Mattel Inc. (MAT) reported its
third-quarter earnings rose 16% on continued strong sales growth
for its Monster High and American Girl doll brands and an
improvement in Barbie sales.
Shares closed at $47.24 Friday and were mostly inactive
premarket. The stock is up 32% this year.
Write to Nathalie Tadena at nathalie.tadena@wsj.com
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