Hasbro has posted a positive start to the year as net revenues increased by 5% to $713.5m for the first quarter.
The children‘s toy conglomerate has reported an unexpectedly strong growth in sales in this week‘s first-quarter announcements.
Brian Goldner, Hasbro‘s President and Chief Executive Officer, comments on the brand‘s surprising uplift, “While the first quarter is the least significant quarter of the year, the global Hasbro team has delivered a strong start to the year.”
“2015 is off to a good start with continued momentum in our business, led by growth in all of our franchise brands and the underlying strength in demand across international markets, including the emerging markets.”
The Monopoly board game maker recorded a profit of $26.7m, and the quarter included an $8.5m income tax expense.
Hasbro cited its unprecedented results as the outcome of a strong demand for its Transformer, Nerf and Marvel toys. The retailer had instead anticipated short sales in toys because of children‘s shift in interests from traditional toys to gaming and electronic devices.
Revenues for toys in the Boys category grew by 10% to $272.bm, but revenue for the Girls category declined by 16% primarily due to a drop of in demand for Furby, Furreal Friends and Easy Bake products. Pre-school category revenue increased by 22%, and games sales by 7% to $235.6m.
This week is one of the busiest for first-quarter trading updates, with many expecting weak retail earnings because of the anxiety surround Greek‘s unresolved debt and a surge in the dollar impacting overseas sales.
Last week, the group‘s rival Mattel reported a decline of sales in its quarter sales. The company has experienced six consecutive bad quarters but its chief executive pledged a “rapid redo” of the company culture to develop more creative toys and sell them better.
By Natalie Whitmore