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 Transformers, Magic: The Gathering, Nerf (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.