Hasbro Inc. reported better-than-expected revenue and profit in its latest quarter, as offerings such as Star Wars and Frozen brand toys through its Walt Disney Co. license continue to drive growth at the toy maker.
Hasbro said its recently acquired, and closely watched, line of reimagined Disney Princess and Frozen dolls helped boost the girls segment, with segment sales increasing 35% to $172.3 million. In 2014, Hasbro won the rights to the popular dolls away from toy-making rival Mattel Inc.
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Sales of NERF products, as well as Hasbro's deep lineup of Star Wars-themed toys tied to the release of the latest film in the series, helped boost sales in its boys segment 4% to $355.1 million compared with a year ago. The preschool category increased 5%, helped by Play-Doh.
Hasbro's games segment rose 8%. Sales of Pie Face and Yahtzee were among the brands contributing to growth.
In all, Hasbro posted a profit of $52.1 million, or 41 cents a share, up from $41.8 million, or 33 cents a share, a year prior. Revenue increased 10% to $878.9 million. Excluding headwinds from foreign exchange, the company said revenue rose 12% in the period.
Analysts polled by Thomson Reuters had forecast adjusted per-share earnings of 39 cents a share on revenue of $859 million.
Hasbro's strength comes as the toy industry has experienced a resurgence lately, easing concerns that playing with traditional toys had ceded ground to children tapping away at smartphones and tablets. Toy sales rose 6.7% in the U.S. last year, the best results in more than a decade, according to research firm NPD Group Inc.
Mattel reports its results on Wednesday. While it has struggled recently, Mattel has taken some steps to bolster its operations. In April, Mattel reported its loss widened as Barbie sales fell and it was unable to make up for the loss of the Disney license to Hasbro.
Hasbro shares, which have increased 27% so far this year, were inactive in premarket trading.
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