Sarah Whitten
Strong sales of “Star Wars” and “Frozen 2” toys helped boost Hasbro’s holiday sales during the fourth quarter, sending shares of the company up about 7% in premarket trading Tuesday.
Net income rose to $267.3 million, or $2.01 per share, in the fourth quarter ended Dec. 29, from $8.8 million, or 7 cents per share, a year earlier. Earnings in the latest period were helped by a one-time benefit of $102.5 million from gains in foreign currency hedging.
Excluding items, the company earned $1.24 per share, higher than analysts’ estimate of 91 cents, according to data from Refinitiv.
Net revenue rose 2.8% to $1.43 billion, but missed the estimate of $1.44 billion.
Revenue from Hasbro’s partner brands unit, which includes sales of toys based on entertainment franchises, rose nearly 50% to $408.5 million in the fourth quarter.
For the full year partner brands rose 24% to $1.22 billion. Hasbro pointed to strong sales of “Frozen 2,” “Avengers,” “Spider-Man” and “Star Wars” lines for the increase.
The company’s games segment suffered during the fourth quarter, with revenue falling 8% to $246.4 million. While sales of Dungeons and Dragons remained strong, dwindling purchases of Pie Face and Speak Out weighed on sales.
This is a breaking news story. Please check back for updates.
