Thanks to licensing deals on movies like Star Wars and Jurassic World, Hasbro is on track for record sales this year and the next. Bobbi Rebell reports.
Hasbro secret weapon: Star Wars
Investors gave great reviews to Hasbro’s better-than-expected results, which were driven in large part by movie tie-ins.
Not only was there strong demand for “Jurassic World” themed toys, but merchandise tied to the not yet released “Star Wars: Episode VII – The Force Awakens” were hot sellers.
Net income rose 25 percent.
The better-than-expected quarterly results sent the stock up more than six percent on Monday.
Piper Jaffray’s Stephanie Wissink:
SOUNDBITE: STEPHANIE WISSINK, SENIOR ANALYST, PIPER JAFFRAY (ENGLISH) SAYING:
” All of our checks across the channel, more and more dollar share is going towards Hasbro’s collection of brands, and, I think, it helps for them to have some big partnerships in the media industry. We are seeing content convergence be the single biggest driver in the toy industry, and, I think, you have to hand it to Hasbro.”
Still its strong point – their boys business.
Hasbro’s girls business, with toy’s like My Little Pony, is still under pressure.
It’s not alone there. Market leader, Mattel, has also been struggling with its girl’s toys business, with sales of Barbie doll continuing to disappoint, falling 11 percent in its latest quarter.