Hasbro Tops Street in 2Q But Reports Weak North American Sales

By RetailFOXBusiness

Hasbro (NYSE:HAS) revealed weaker second-quarter sales and profit on Monday citing soft sales growth in North America, but the toymaker still topped Wall Street expectations.

The Pawtucket, R.I.-based maker of G.I. Joe, PlaySkool and Tonka toys earned $43.4 million, or 33 cents a share, compared with a year-earlier $58.1 million, or 42 cents.

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The results topped average analyst estimates in a Thomson Reuters poll by 10 cents.

Shares of Hasbro climbed nearly 4% to $35.15 Monday morning.

Revenue for the three-month period was $811.5 million, down 11% from $908.5 million, missing the Street’s view of $828.6 million. Sales fell 19% to $406.6 million in U.S. and Canada, a reflection of softer demand in the boys, girls and games categories, as well as 4% to $360.5 million in international markets.

Despite the softness, Hasbro CEO Brian Goldner said the toymaker has gained market share in the U.S. and Canada and has partnered with U.S. retailers to shift shipments closer to peak consumer demand periods in the third and fourth quarter.

“2012 continues to develop in line with our expectations as we shift more of our shipments later in the year while improving profitability in the near term,” Goldner said in a statement.

Internationally, Hasbro said it continues to expand and invest in emerging markets. The company said that minus the negative $33.4 million foreign exchange impact, international sales actually grew 5%.

In Hasbro’s entertainment and licensing group sales grew 59% to $43.2 million, led by the sale of television content in all formats in the U.S. and internationally.