Hasbro Inc. posted better-than-expected revenue and profit in
its first quarter, as the toy maker logged growth despite foreign
exchange impacts.
Hasbro's Transformers toys and preschool division helped drive
growth in the first three months of the year.
Shares gained 6.2% in premarket trading.
Hasbro's upbeat results come at a tough time for the toy
industry, as children turn away from traditional toys to electronic
games and consumer electronics.
Last week, rival Mattel Inc. reported its sixth straight quarter
of sales declines while its new chief executive pledged a "rapid
redo" of the company culture to develop more creative toys and sell
them better.
For the period ended March 29, Hasbro posted a profit of $26.7
million, or 21 cents a share, compared with $32.1 million, or 24
cents a share, a year earlier. The quarter included a $8.5 million
income tax expense, compared with a $5.5 million benefit a year
ago.
Revenue grew 5% to $713.5 million. Excluding a $62.6 million
foreign exchange impact, revenue would have grown 14%.
Analysts polled by Thomson Reuters had projected earnings of
eight cents on revenue of $660.3 million.
Sales in Hasbro's boys division, which includes Transformers and
Nerf toys, grew 10% to $272.6 million in the quarter. Preschool
sales surged 22% to $88.1 million, fueled by strength in its
Play-Doh brand and Transformers Rescue Bots toys.
Demand for Hasbro's toys traditionally considered for girls,
such as My Little Pony, had shown growth in recent quarters. In the
latest quarter, however, sales fell 16% to $117.1 million amid
weakness in Furby and Easy Bake products.
Games sales increased 7% to $235.6 million.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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