Tag: 2nd quarter

Inside the Numbers: Hasbro’s Q2 Earnings

It was another strong quarter for Hasbro, though not a strong enough quarter in the eyes of some investors. As a result, Hasbro’s stock price (NASDAQ:  HAS) fell $11.01 a share to $104.94/share. Hasbro’s stock had been at or near a record high the last few days.

Franchise brands were up 21% in Q2 with the growth coming from TransformersMagic: The GatheringNerf (consistent performer), and Monopoly. The hurt came from the Partner brands (i.e. Star Wars, Disney Princess, Trolls, etc). which was up just 1% and Emerging brands down 14%.

When it comes to MLP, Hasbro CEO Brian Goldner said it was “off just a bit for the quarter,” but remains highly optimistic that things will pick up considerable as the movie approaches in October. The official launch of merchandise is after Friendship Day on Sunday, July 30th, though Movie merchandise is already hitting stores such as Target and Wal-Mart as well as online where sales are very strong.

“The My Little Pony franchise is well positioned for the October 6 of My Little Pony: The Movie,” said Goldner as transcribed by Seeking Alpha.  “Consumer engagement with the franchise remains high and global retailers are providing cross category support for our innovative new line and expensive consumer products program.”

That may not be truly evident until the fourth quarter as it was noted that consumer products royalties from brands such as MLP and Transformers comes in the quarter after the sales occur. Meaning merchandise sold in August for example. may not be reflected until the fourth quarter presentation.

This is concurrent with the restart of Season Seven and all of the MLP action going on at Hascon in September. So everything looks to be towards the second half of the year for MLP and what a second half it will be.

StatManDan

Inside the Numbers: Hasbro’s 2016 Q2 Earnings

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Hasbro continued to be spearheaded by its licensing deals with Star Wars and Disney Princess an Disney Frozen. Revenues overall grew 10% for the second quarter and operating profit grew 12%. The Boys segment was up 4% led by double-digit growth in Nerf, but there were issues with declines for Transformers and Jurassic World which cause a near $6 decline in the company’s stock today. Games was up 8% led by Pie-Face , Duel Masters, and Yahtzee. Preschool was up 5% and led by double-digit growth in Play-Doh. Girls was up 35% and led by Disney Princess and Disney Frozen.

MLP was hardly mentioned in the earnings call which went under 50 minutes. Hasbro CEO Brian Goldner said on the conference call that while revenues for MLP were slightly off in the quarter, there are things to look forward to in the second half of the year and leading up to the 2017 movie.

“MY LITTLE PONY declined slightly in the quarter as we transition elements of our toy line,” said Goldner. “Over the past five years, content and innovation has propelled this brand in both games and toys and consumer products.

“MY LITTLE PONY FRIENDSHIP IS MAGIC season six is currently airing around the world and our fall product line features the core cast inspired by the locations they visit. MY LITTLE PONY EQUESTRIA GIRLS mini dolls have performed very well, exceeding our expectations, and are helping offset difficult comparisons to a year ago.

“This leads us to next year, when on October 6, 2017, MY LITTLE PONY: THE MOVIE will hit theatres with an all-star cast and global distribution from Lionsgate. The film introduces new characters, new worlds and new play experiences for the MY LITTLE PONY fan.”

A lot of what Hasbro is doing is indeed back-ended and that back end starts with San Diego Comic Con starting Thursday. There are a pair ofTransformers initiatives coming up this year and there’s a 2017 movie. Of course, revenues for Transformers usually face headwinds when there isn’t a movie and we’re currently two years removed from one.

Back to MLP, there is “Legends of Everfree” this Fall and the second half of Season Six starting on July 30th and the first half coming to Netflix the same day. So while this was, given its recent past, and off quarter, there is still plenty to look forward to with an emphasis on the 2017 movie.

StatManDan