Hasbro earnings have soared thanks to their recently launched Disney Princess toys, says CEO Brian Goldner.
Hasbro’s contract with Disney boosted their earnings — which in fact, topped their estimates — thanks to the popular demand for toys in their girls category. The toymaker launched the toy forms of all 11 Disney Princesses earlier this year and, due to the high demand, expect to produce more in the coming months.
“We had always wanted to work more significantly with Disney,” says Mr. Goldner, “and we worked for many years to build our reputation in girls through consumer insights and creativity.” For this reason, the CEO shares that the company is happy for the right and opportunity to build the Disney Princess and Disney’s Frozen business.
Topping Sales Forecasts
Hasbro’s third quarter revenue report evidently shows how the demand for Disney products greatly affected their earnings. In fact, the strong sales boosted by Disney products easily topped the toymaker’s forecasted results.
The strong sales of toys, such as the Disney Princesses and Disney’s Frozen, helped their revenue for the girls toy category rise to $462 million. That’s 57% more than last year — a stark difference from the 2% sales surge in toys for boys.
Disney Toys for Boys
It is interesting to note that Hasbro did not include toys from the Star Wars prequel Rogue One in their earnings release, even if the toys went on sale just last month. In fact, there was no mention of Star Wars in the report.
As a refresher, Disney owns Star Wars maker Lucasfilm, so the franchise is technically under Disney too.
Outside the Disney Realm
Meanwhile, in addition to the demand for toy forms of Disney Princesses such as Rapunzel and Anna, the demand for Trolls products helped with the positive forecast of Hasbro’s girls toys category.
According to the toy maker, third quarter sales are strong for the DreamWorks Animation movie, which is set for release this November.
Increase in Shares and Stocks
Shares have increased by nearly 8% for Hasbro, while stocks rose by over 20% this year. In other figures, the toymaker reported an overall revenue of $1.68 billion that beat their $1.56 billion estimate. Their earnings per share of $2.03 are also above the estimated $1.74 per share of Thomson Reuters.
In other news, the toymaker’s rival company, Mattel, may have lost the Disney license this year, but they are also making a comeback under their new CEO Christopher Sinclair. The company is taking over the rights to Jurassic World toys from Hasbro this year.