Hasbro Reports Year End Earnings in Q4 Conference Call

Monday, February 8th, 2016 11:52am CST

Categories: Company News, Digital Media News
Posted by: william-james88   Views: 18,467

Topic Options: View Discussion · Sign in or Join to reply

Hasbro has published their Q4 and year end earnings today. The boy toys category is where there was the greatest increase of revenue over last year and that was due to Star Wars, Nerf and Marvel. This is great since it offset the decrease in Transformers sales which is routine in a non movie year.

Here are the highlights:

2015 full-year net revenues increased 13%, absent a negative $394.5 million impact of foreign exchange; Including the impact of foreign exchange, revenues increased 4% to $4.45 billion;
2015 revenues grew in all major operating segments and regions, absent the impact of foreign exchange; Including the impact of foreign exchange, the U.S. and Canada segment revenues increased 10%, International segment revenues declined 3% and Entertainment and Licensing segment revenues increased 11%;
Boys, Preschool and Games category revenues increased both as reported and absent the impact of foreign exchange; Franchise Brand revenues increased 7% absent the impact of foreign exchange, but declined 2% including the impact of foreign exchange;
2015 operating profit increased 9% and net earnings increased 9% to $451.8 million or $3.57 per diluted share; Adjusted net earnings increased to $445.0 million or $3.51 per diluted share, excluding the sale of manufacturing operations;
In 2015 Hasbro returned $310.7 million of cash to shareholders; Generated $552.4 million in operating cash flow for the year.


Category Breakdown

Transformers News: Hasbro Reports Year End Earnings in Q4 Conference Call


Full-year 2015 Boys category revenues increased 20% to $1.78 billion. Franchise Brand NERF revenues increased along with STAR WARS, JURASSIC WORLD and MARVEL. This growth more than offset the decline in TRANSFORMERS, which faced difficult comparisons versus 2014's theatrical release of TRANSFORMERS: AGE OF EXTINCTION. The Boys category grew 30% absent the impact of foreign exchange.


About Foreign Exchange

For those wondering why the exchange is such a big deal in the highlights section, it's because a strong American dollar affects negatively on American companies selling products elsewhere in the world. For instance, looking at the Canadian exchange, the initial contracts were drawn up while the exchange was about the same or close. A deluxe Transformer toy priced at $17.99 will bring you back USD $17.99 in the US regardless, but in Canada, it would be priced the same $17.99 in Canadian dollars. With the American dollar getting stronger, that CDN $17.99 ends up becoming USD $12.94, thus lowering Hasbro's revenue (I am using retail prices, but we can extrapolate to the loss Hasbro has when retailers like Toysrus pay for the contracted amount later when the exchange is lower).

Credit(s): Hasbro


News Search

Got Transformers News? Let us know here!

Re: Hasbro Reports Year End Earnings in Q4 Conference Call (1764395)
Posted by RAR on February 8th, 2016 @ 12:50pm CST
It's sort of sad that Transformers is doing badly compared to a pretty poor performance they had on Age of Extinction.

But it's like I often speculate - I just don't think RID is capturing people hearts as much as it might have.

If only it was possible to crunch the numbers to see if the over abundance of stuff aimed at say 7 year olds is a good thing or a bad thing.

I got the impression that they are still under-selling Rescue Bots compared to it's potential revenue so the younger end should be making more money.

I think if I had to guess (an it is just a guess) I would say they have lost some of the top end via dumbing down and the focus of the children who might be getting say 1 step changer or 3 step changers might actually be a lot smaller segment than you might think it should be if the younger kids gravitate to the Rescue Bots and the older kids don't want to be patronised by 3 step changers.

I expect if they made the 3 step slightly better toys the issues with them might be a bit less of a problem - but my personal opinion or thought is that perhaps those who buy a 3 step don't go out and buy a lot more of them - where as maybe they might buy more warriors.

But the problem with the entire RID line is it isn't sold like Transformers it's sold like Generic Action Figure brand number 200.

What I mean by that is that Transformers used to have a partial focus on new characters and variety and then a large chunk on "key characters"

Now it may as well be a Kenner Batman toyline with the majority being only random repaints of the same thing over and over (even if the toy is another character sometimes as with Combiner Wars or Minicons) but the main chunk is endless Optimus and Bumblebee.

Even when ROTF & DOTM when crzy bonkers for Bumblebee they did still make others too - RID-15/16 has a bit of a lack there though in my opinion at least.

Hopefully they can raise their game a bit once Hasbro's Star Wars mania dies down a bit.
Re: Hasbro Reports Year End Earnings in Q4 Conference Call (1764398)
Posted by william-james88 on February 8th, 2016 @ 12:52pm CST
RAR wrote:It's sort of sad that Transformers is doing badly compared to a pretty poor performance they had on Age of Extinction.

But it's like I often speculate - I just don't think RID is capturing people hearts as much as it might have.


RID is doing better than Prime did. Hasbro has gotten great sales on a non movie year, better than other years where there was only prime and generations.
Re: Hasbro Reports Year End Earnings in Q4 Conference Call (1764521)
Posted by Gunmetal on February 8th, 2016 @ 6:15pm CST
william-james88 wrote:
RAR wrote:It's sort of sad that Transformers is doing badly compared to a pretty poor performance they had on Age of Extinction.

But it's like I often speculate - I just don't think RID is capturing people hearts as much as it might have.


RID is doing better than Prime did. Hasbro has gotten great sales on a non movie year, better than other years where there was only prime and generations.

I remember discussing this on another site back when Hasbro had their investor day. AoE didn't have particularly poor performance:
Transformers-Live-Action-Movie-Stats.jpg

(Sorry for the compression. You can view the full-size here: http://news.tfw2005.com/2015/11/16/tfw2 ... 015-305388)

As you can see, AoE didn't make RotF money, but its earnings were in line with the other two films. You may be thinking about box office (which, like most sequels, did decrease) but box office and toy sales aren't as closely aligned as we might think. I like this chart because it shows how movie and non-movie years clearly have different baselines.

Also, to echo Will, note how well 2015 looked, considering that that's only the first 9 months (i.e. without Christmas).
Re: Hasbro Reports Year End Earnings in Q4 Conference Call (1764591)
Posted by Shockwave7 on February 8th, 2016 @ 9:24pm CST
Transformers didn't do as well last year? I thought they did great with Combiner Wars - I know I bought a lot more figures in 2015 than I normally get - and it was all CW, man....
Re: Hasbro Reports Year End Earnings in Q4 Conference Call (1764593)
Posted by william-james88 on February 8th, 2016 @ 9:27pm CST
Shockwave7 wrote:Transformers didn't do as well last year? I thought they did great with Combiner Wars - I know I bought a lot more figures in 2015 than I normally get - and it was all CW, man....


They did do great. They just didnt do as well as when there were movie toys, which is anticipated.

Featured Products on Amazon.com

Buy "Transformers Generations Titans Return Deluxe Twin Twist and Flameout" on AMAZON
Buy "Transformers Studio Series 09 Voyager Class Movie 2 Thundercracker" on AMAZON
Buy "Transformers: Generations Power of The Primes Megatronus Prime Master" on AMAZON
Buy "Transformers: Generations Power of The Primes Solus Prime Prime Master" on AMAZON
Buy "Transformers Deluxe 20 Mercenary Action Figure" on AMAZON
Buy "Transformers Studio Series 12 Voyager Class Movie 1 Decepticon Brawl" on AMAZON
Buy "Transformers Toys Megatron Cyberverse Ultimate Class Action Figure - Repeatable Fusion Mega Shot Action Attack Move - Toys for Kids 6 and Up, 11.5-inch" on AMAZON
Buy "Cyberverse Warrior Class Acid Storm" on AMAZON
Buy "Transformers Robots in Disguise Warriors Class Autobot Jazz Figure" on AMAZON
Buy "Transformers MV5 Turbo Changer Super Nova Action Figure" on AMAZON
Buy "Transformers Generations Titans Return Titan Master Clobber" on AMAZON
Buy "Transformers Generations Titans Return Titan Master Furos and Hardhead" on AMAZON
Transformers Podcast: Twincast / Podcast #273 - Our Way to Oblivion
Twincast / Podcast #273:
"Our Way to Oblivion"
MP3 · iTunes · RSS · View · Discuss · Ask
Posted: Tuesday, April 6th, 2021

New Items on eBay

Buy "New Transformers Siege War For Cybertron Leader Class Shockwave MISB" on EBAY
Buy "HASBRO TRANSFORMERS SIEGE WAR FOR CYBERTRON RATCHET WALGREEN'S DELUXE MISB VHTF" on EBAY
Buy "Transformers War for Cybertron Siege Astrotrain Shockwave Barricade" on EBAY
Buy "Transformers War for Cybertron Siege Earthrise Autobot Lot Bumblebee Mirage" on EBAY
Buy "Takara Tomy Transformers / SIEGE WAR FOR CYBERTRON sound wave SG24" on EBAY
Buy "Transformers War For Cybertron Netflix Walmart Quintesson Deseeus Army Drone NEW" on EBAY
Buy "Transformers G1 Pretenders Bludgeon incomplete lot Please Read Description" on EBAY
Buy "Hasbro Transformers: Optimus Prime - Bumblebee Cyberverse Adventures (E7112)" on EBAY