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« on: April 21, 2010, 11:04:26 AM »
I found this story on Forbes.com while googling the WEB about GI Joe and looked interesting:
Carl Gutierrez, 04.19.10, 05:30 PM EDT
Strong sales through most of its business offset drop in boy-related toy sales.
Hasbro's first quarter earnings growth possibly indicates that the vaunted American consumer is coming back to life.
Hasbro ( HAS - news - people )'s quarter was reminiscent of chief competitor Mattel ( MAT - news - people ), which reported on Friday. Toys, it would seem, are a more tenacious consumer item during a recession than other products. Even so, the retail segment in general appears on the mends as consumer budgets begin to thaw. On Wednesday the U.S. Commerce Department reported retail sales rose for the third consecutive month, gaining 1.6% in March.
Hasbro's case, earnings nearly tripled to $58.9 million, or 40 cents per share, from $19.7 million, or 14 cents per share, in the first three months of 2009. Sales meanwhile rose to $672.4 million, up 8.2% from $621.3 million a year ago. Excluding a tax adjustment, Hasbro’s earnings only reached 26 cents per share, but that was still well ahead of the 16 cents per share Wall Street expected.
Brian Goldner, the toy maker's chief executive, cautioned investors to not expect the second quarter to top last year's, which benefited from the release of movies based on Transformers and G.I. Joe.
The market was pleased with the report, pushing shares of the toy maker 2.7%, or $1.06, higher, to $40.91, while peer Mattel slipped 1.3%, or 32 cents, to $23.52. Hasbro’s shares have risen 6.1% over the past month, and 26.1% since the beginning of the year.
The company’s international segment saw the biggest gains, as sales rose 17.2% to $221.7 million, thanks partly to a $16.3 million impact from foreign exchange. Sales in the U.S. and Canada gained 5% to $424.7 million, from $404.5 million, thanks to growth in Games & Puzzles, Girls and the Preschool businesses, all of which offset the drop in its Boys segment, which set the pace in the prior quarter. (See “Real American Hero Lifts Hasbro.”)
Goldner maintained his confidence, saying that he believes Hasbro will be able to grow sales and earnings for the full year 2010. In a treat to its investors, Hasbro demonstrated that confidence by announcing a $625 million share buyback program Monday, which follows its recently increased dividend.
