Hasbro (NASDAQ:HAS) has been trading close to its 52-week high after announcing second quarter earnings of US$41.8 million dollars ($ 0.33 per share), against US$33.5 billion ($ 0.26 per share) in the same period a year ago.
Revenues were down 4% year on year, to US$797.7 million, but excluding currency effects, revenues grew 5%. Analysts on average expected a quarterly EPS of US$0.29/share on revenues of US$774 million.
The gains were attributed to strong demand for toys derived from the Jurassic World and Marvel movie franchises. Sales of preschool toys also increased (+14%) especially Play-Doh brand products.
Given these result, investors can expect Hasbro’s wide range of Star Wars-themed toys to boost earnings further as Disney gets set to release the latest chapter in the series “Star Wars: the Force Awakens” in time for Christmas.
The movie franchise strategy has been the key to Hasbro’s success even as sales of its trademark Nerf and My Little Pony continue to do well. Mattel, its biggest rival, has not been as able to capture this market, losing market share.
In total, sales declined 9% abroad and increased 1% on US territory during the quarter.