Hasbro bucked the glum holiday toy season with surprisingly strong sales of Disney princess dolls, sending its shares to an all-time high Monday.
The No. 2 US toymaker won the lucrative contract for dolls based on Walt Disney’s princesses, including Cinderella and Snow White, from archrival Mattel in 2014. It started selling them last year.
Hasbro shares surged 17 percent to an a record high of $96.34 in early Monday trades.
Shares of No. 1 toymaker Mattel, which last month reported disappointing Barbie sales, were up about 2 percent at $26.27.
Hasbro said revenue from toys in the girls category jumped 52 percent, as demand for dolls based on Disney’s Cinderella and Frozen franchises rose significantly in the fourth quarter ended Dec. 25.
Global sales of its board games also rose 11 percent, driven by demand for its franchise brand Magic: The Gathering and also Pie Face.
Hasbro likewise said it benefited from strong demand for dolls based on DreamWorks’ “Trolls” movie, which was released in November.
Hasbro is the first toymaker to report strong quarterly results despite a weak holiday season.
Demand for toys industrywide rose only 5 percent, missing a forecast of 6.5 percent, hurt by increased promotional activity, intense competition and a slump in consumer purchases in the first three weeks of December, according to industry research firm NPD Group.
Jakks Pacific reported dismal holiday-quarter results in December. Retailer Toys “R” Us Inc also reported a 3.4 percent decline in same-store sales in January, highlighting a very promotional environment.
Mattel, the No. 1 U.S. toymaker, posted disappointing quarterly sales and profit in January, citing a “significant U.S. toy category slowdown in the holiday period.”
Hasbro’s revenue rose 11.2 percent to $1.63 billion, beating analysts’ average estimate of $1.50 billion, according to Thomson Reuters I/B/E/S.
Net income rose to $192.73 million, or $1.52 per share, in the quarter, from $175.76 million, or $1.39 per share, a year earlier.
Excluding items, the Pawtucket, Rhode Island-based company earned $1.64 per share. Analysts on average had expected $1.12.
Our editors found this article on this site using Google and regenerated it for our readers.
