US toymaker Hasbro reported a lower-than-expected decline in quarterly revenue, helped by strong demand for its Jurassic World- and Star Wars-themed toys.
Demand for toys based on movie franchises have been driving Hasbro’s sales as traditional toys fall out of favour.
Jurassic World notched the biggest movie debut in history last month, while Star Wars: Episode VII – The Force Awakens, set for release in December, is one of the most anticipated films this year.
Hasbro's sales in the United States and Canada rose 1 per cent in the second quarter ended June 28th. International sales, about 45 per cent of total revenue, declined 9 perc ent, hurt by a strong dollar.
The company’s net revenue fell 4 per cent to $797.7 million. Excluding the impact of the dollar, revenue rose 5 per cent.
Still, revenue topped analysts’ average estimate of $773.1 million, according to Thomson Reuters I/B/E/S.
Net income attributable to Hasbro rose nearly 25 per cent to $41.8 million, or 33 cents per share, also beating analysts’ estimate of 29 cents per share.
Sales in Hasbro's boys category, its biggest business, rose 1 per cent. However, sales of girls toys such as the My Little Pony toys slumped 22 per cent.
Market leader Mattel has also been struggling with its girls toys business, with sales of Barbie doll not rising for the past few quarters.
Still, Mattel posted a surprise adjusted profit last week, helped by demand for its Fisher-Price preschool toys.
Hasbro’s shares closed at $78.25 on the Nasdaq on Friday. – (Reuters)
