Mattel and Hasbro have solid Q3 with sales up amid difficult environment

Mattel and Hasbro have solid Q3 with sales up amid difficult environment
WGSN 21.10.08




Toy giants Mattel and Hasbro have both posted solid results for the third quarter amid a difficult consumer environment, with sales up at both companies as they head into the crucial Holiday period.
Mattel said that sales worldwide were up 6% to $1.95bn, including a favourable gain from currency exchanges of two percentage points. There was a 4% domestic increase and a 7% hike internationally – including a favourable currency exchange gain of six percentage points – while net profit was $238.1m/ $0.66 per share, compared to $236.8m/$0.61 in the same period last year.
"In light of the recent global economic environment, our business performed well in the quarter," said CEO Robert A Eckert.
By brand, Mattel said modest domestic growth in Barbie sales was offset by international declines and the brand posted a 1% sales slip worldwide, but its Other Girls Brands saw sales rise 26% driven primarily by Disney's High School Musical dolls.
In its Wheels category, which includes the Hot Wheels, Matchbox and Tyco R/C brands, sales were up 7% and its Entertainment business saw a 3% increase in the quarter on the back of shipments related to the Batman: The Dark Knight, Speed Racer and Kung Fu Panda movie properties.
Fisher Price, meanwhile, saw a 4% sales hike to $833.1m while its American Girl Brands business registered an 11% sales hike to $78.8m.
Hasbro, meanwhile, also reported a 6% sales hike to $1.3bn, which dipped to 5% when accounting for the impact of foreign exchange. US and Canadian sales grew 6% while international revenues drove 9% higher, or 4% excluding the foreign exchange impact.
Net profit was $138.2m/$0.89, an increase on the $132m/$0.78 posted last year when excluding the benefit of a favourable tax adjustment of $29.6m/$0.17. Including the tax adjustment benefit, Hasbro posted earnings in Q3 last year of $161.6m/$0.95.
"We are very pleased with our third quarter and year-to-date performance," said CEO Brian Goldner. "In a challenging environment, we delivered both revenue and earnings growth