Things seem to be improviing at Hasbro after cost cutting efforts to save $100 million in annual savings by 2015. Lead by CEO Brian Goldner who has taken steps to make Hasbro's organization more efficient to serve retailers in the American and European markets was well as expand into into fast-growing countries where they report a 22% increase in revenue growth in the latest period. Unforuntely, Boys' products sales continue to fall to just 17% of their sales. This was made up for by increses in games and girls products that improved by 5.9% and 29%.
Oct. 21, 2013, 7:03 a.m. EDT
Hasbro third-quarter profit up 17%
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By Nathalie Tadena
Toy maker Hasbro Inc.'s HAS +7.05% 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 +0.48% 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.