HASBRO: Price hike as Q2 results posted

Hasbro reports second quarter results and unveils plans for price rises.
Author:
Publish date:
Social count:
0
5_Pocoyo.jpg

Hasbro has posted higher than expected quarterly profit today, aided by sales of toys tied to movies including Indiana Jones and brands such as G.I. Joe. The toymaker also unveiled plans to hike prices to combat rising costs.

Hasbro shares fell four per cent, hurt in part by the company's comments on costs, said Chris White, a Wedbush Morgan Securities analyst: "Clearly, they are starting to feel (the effect of rising costs), and the question now is, how big is it?"

Second quarter profit rose to $37.5 million, or 25 cents a share, from $4.8 million, or 3 cents a share, a year earlier.

Analysts, on average, had expected a profit of 22 cents per share, according to Reuters Estimates. Hasbro also said sales rose 13 per cent to $784.3 million.

Hasbro said U.S. and Canadian sales rose 11 per cent to $467.7 million, while sales in international markets increased 15 per cent to $293.7 million, aided by the weak dollar.

This year companies are being hit by high commodity prices. Hasbro has cited higher costs for transporting its goods, despite expecting higher earnings this year.

"While input cost inflation continues to be challenging, thus far we have been able to mitigate most of the impact through cost savings initiatives and pricing actions," Hasbro Chief Operating Officer and Chief Financial Officer David Hargreaves said in a statement.

From 1st September, Hasbro will raise prices for its toys in the mid-single-digit percentage range to protect its margins, Hargreaves added on a conference call. Mattel also raised prices on most of its products by mid-to-high-single-digit rates in June.

Stern Agee analyst Margaret Whitfield predicted that sales of toys should remain steady during unsteady economic period. "Toys are priced typically under $20. A price increase to keep pace with input costs is not as significant as it would be in the case of a higher-priced consumer product,' Whitfield said.

Hasbro said it spent $51.6 million to buy back 1.65 million shares of its common stock during the second quarter.

Hasbro shares were down $1.50 to $36.49 in morning trade on the New York Stock Exchange after falling as low as $35.86 earlier in the session. The shares have traded as low as $21.70 and as high as $39.97 in the past year.

Source: Reuters

Related

Featured Jobs

Vivid Job Logo 620 x 349

Digital Marketing Executive - Toys & Games

Vivid is Britain’s biggest toy company and the 20 largest in the world. With offices across the globe, they sell an amazing portfolio of toys and games to over 60 countries. Vivid is best known for its association with blockbuster brands and is very excited about future opportunities around the world.

Liberty

UK Sales Agents

Liberty House Toys have been appointed as the exclusive UK distributor for the BiOBUDDi brand, and we are pleased to introduce this new unique, innovative and exciting range of 100% environmentally-friendly toy building blocks. We are seeking experienced sales agents with existing network in the toy retail market.

Gameplan Job Logo 620 x 349

Head of Product Development & Marketing

Our client is a privately owned French toy and games manufacturer which sells through distributors in forty countries. The company develops and sells innovative electronic interactive toys and games for the educational and gaming markets, and also takes suitable licenses. To progress its successful business development a Head of Product Development & Marketing is to to recruited.

HIT Entertainment Job Logo 620 x 349

Licensing Systems Administrator

The Contract System Coordinator is a newly created role to support the deal term entry process into Mattel’s new Contract Management System for its Licensing business. The role will support the Business Teams at the Deal & Amendment phase of the contracting process and act in conjunction with the System Administration team.