Hasbro’s first quarter results were released today. The My Little Pony line once again posted solid overall growth, with sales to both retailers and consumers increasing in countries such as the US, UK, France, and Spain. MLP was the only toy line in the “girls” category to grow in the quarter. The show is now airing in more than 160 countries. Hub ratings grew 32% among kids 2-11 relative to the prior year. The show is ranked #2 on the Hub among kids 2-11, trailing Transformers: Rescue Bots. Good to see strong performance among the target audience!
The broader picture for Hasbro was a bit grimmer, as the company reported layoffs of 170 alongside a loss of $2.6 million, or 2 cents per share (4 cent profit after adjusting for layoff costs). This result missed analyst expectations of a profit of 7-8 cents per share, and the stock was off 3% at midday today. The decline was driven by an 18% drop in the girls’ category, as well as a 9% drop in the games category. In particular, the Littlest Pet Shop line, which used to be Hasbro’s #1 girls category before being replaced by MLP, has fallen off precipitously. Hasbro is counting on a reboot, supported by a new Hub show later this year, to turn the line around. ■
[Source: Hasbro Financial]