PAWTUCKET, R.I. — Despite slowed consumer demand in the critical holiday-buying months and the bankruptcy filing of retail giant Toys R Us, Hasbro saw net revenues in 2017 rise 4 percent from the year before, to a record $5.21 billion, the company reported on Wednesday.
At the same, however, Hasbro reported fourth-quarter 2017 results that showed net revenues of $1.60 billion, down from the $1.63 billion reported the same quarter of 2016. In October, the company had projected an increase in fourth-quarter revenues.
Last week, rival Mattel Inc. posted an unexpected loss and disappointing sales for the quarter that includes the holiday season.
Hasbro's full-year net earnings were reported at $396.6 million, or $3.12 per share, compared with $551.4 million, or $4.34 per share in 2016.
Nevertheless, the earnings report beat Wall Street expectations, which apparently pleased investors. Hasbro's share price closed at $102.22 on Wednesday, up 8.8 percent on the day.
Company executives said the year-over-year revenue increase was supported by vigorous performances in what the company calls its “franchise brands” — among them, My Little Pony, Transformers and Monopoly.
“Hasbro’s global team’s execution of our Brand Blueprint drove revenue gains in Franchise Brands, Hasbro Gaming and Emerging Brands, including immersive brand experiences across consumer products and digital gaming,” Hasbro chairman and CEO Brian Goldner stated in a company release.
“Our strong performance ranked Hasbro [first] across the G11 markets for the full-year 2017. In the fourth quarter, Hasbro Franchise Brand revenues increased 11 percent. However, overall consumer demand slowed in November and December both for the industry and for Hasbro. … Looking ahead, our innovative lines are supported by robust storytelling and digital initiatives that position us well for 2018 and beyond.”
Said Hasbro CFO Deborah Thomas: “Over the past five years, we added over $1 billion in revenues to our top line, growing revenues four consecutive years, while meaningfully increasing operating profit, net earnings and generating significant cash flow. Hasbro is in a strong financial position with the cash and profitability to invest in growing our business for the long term.”
During a long conference call with analysts and others, Goldner and Thomas elaborated on Hasbro’s results and indicated that the company does not intend to rest on its laurels in the months ahead.
“The investments we’ve made over the last 10 years have continued to bear fruit,” Thomas said. She said Hasbro continues to adapt to “a shifting retail landscape,” including the growth of online sales. Hasbro has seen particularly significant growth in online in Asia.
Goldner reaffirmed the company’s commitment to “storytelling” around its core brands and licensed properties. Among other in-house brands, he cited Transformers, which has been helped by a blockbuster movie franchise — and which is expected to be further bolstered by the December release of spinoff film “Bumblebee.”
“We take nothing for granted as we continue to innovate,” Goldner told analysts.
With AP reports