Home / Entertainment / Star Wars and Frozen II fuel Q4 sales growth for Hasbro as toy firm hits $1.43bn

Star Wars and Frozen II fuel Q4 sales growth for Hasbro as toy firm hits $1.43bn

Strong sales of Star Wars and Frozen II toys have helped Hasbro enjoy a three per cent increase in revenue, hitting $1.43 billion in sales in the fourth quarter.

Despite the fallout felt from President Trump’s trade war with China, net income rose to $267.3 million in Q4, ended December 29, a stark increase from the $8.8 million it made just one year earlier.

It’s a return to form for Hasbro who was previously weighed with the threat of tariffs in the third quarter, disrupting the company’s supply chain and leading some retailers to cancel shipments. The company had been working to diversify its supply chain and reduce its reliance on sourcing in China.

On an earnings call, chief financial officer, Deborah Thomas, said that the coronavirus has since disrupted Hasbro’s supply chain and commercial operations in China, citing a ‘small impact’ to date, yet highlighting the difficulty in quantifying the potential magnitude.

The biggest increase for Hasbro in its q4 results came from its entertainment, licensing, and digital segment in which it saw revenues rise 22 per cent. The company recently completed a $4 billion, all cash purchase of the British production and distribution company, Entertainment One.

While it saw particular success in Frozen II and Star Wars toys, it was Hasbro’s Magic: The Gathering Arena and the Transformers: Bumblebee film that helped drive entertainment and licensing revenue.

For the full year, partner brands rose 24 per cent to $1.22 billion, with strong sales of Frozen II, Avengers, Spider-Man, and Star Wars lines. Hasbro currently owns the master toy license for Disney’s Marvel and Star Wars franchises.

Hasbro CEO Brian Goldner said that the partnership with Disney is “very successful” and noted that “The Rise of Skywalker” and “The Mandalorian” have been big drivers of sales for the company.”

On the topic of the impact of the coronavirus on Hasbro’s business, Deb Hancock, senior vice president of investor relations for Hasbro, said: “Impact to our business today is small, but it’s challenging to quantify the potential magnitude at this time, as it will depend on how long it takes to contain the outbreak.

“If it takes a significant period of time to control, there could be a larger impact of our business.”

In games, Hasbro saw revenue fall eight per cent to $246.4 million, driven downwards by a decline in in sales of Pie Face and Speak Out. Even strong sales of Hasbro’s Dungeons and Dragons couldn’t off-set the drop.

Dungeons and Dragons revenue grow for the sixth year running, and Magic revenue increases more than 30 per cent during the year.

About Robert Hutchins

Robert Hutchins is the editor of Licensing.biz and ToyNews. Hutchins has worked his way up from Staff Writer to the position of Editor across the two titles, having spent some six years with both ToyNews and Licensing.biz, and what now seems like a lifetime surrounded by toys. You can contact him by emailing robert.hutchins@bizmedia.co.uk or calling him on 0203 143 8780 You can even follow him on Twitter @RobHutchins3 if ranting is your thing...

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