Hasbro Inc. reported strong revenue during the holiday period, helped by a surge in demand for lightsabers, action figures and other toys tied to “Star Wars.”
Hasbro’s deep lineup of toys related to the blockbuster film led to a 35% sales increase in its boys segment, helping overall revenue rise 13% to $1.47 billion.
Chief Executive Brian Goldner said the company’s overall “Star Wars” business for the year was “very similar” to the nearly $500 million the company made in 2005 when the last installment of the movie hit theaters. And the company forecasts “Star Wars” sales this year to be around that level again.
Hasbro shares rose 1.3% in midday trading to $75.05.
Walt Disney Co.’s “Star Wars” was a boon to the toy industry last year, as collectors and children clamored for new toys tied to the newest feature film in a decade. It was the largest toy property in 2015, helping the overall industry increase toy sales 6.7% last year, according to the NPD Group Inc., the best results in more than a decade.
Hasbro’s Star Wars business wasn’t without problems. The toy maker was criticized by fans for a lack of toys featuring actress Daisy Ridley’s character, Rey. Disney wanted to keep some of the key plot points from “The Force Awakens” hidden initially, so toys depicting Rey wielding a lightsaber, for instance, were held back until January.
Hasbro is trying to bolster its girls division, which reported a 17% decline last year. It is seeking to add more Disney licenses geared toward girls. Hasbro recently started selling Disney’s princess and “Frozen” dolls, having snatched the license from rival Mattel Inc.
Charo Suarez checks out a Darth Vader figure as he shops in a Target store in Miami, Fla.PHOTO: JOE RAEDLE/GETTY IMAGES
The launch is being closely watched to see if Hasbro, which historically establishes itself with boy-focused toys like G.I. Joe action figures and Nerf blasters, can do more with the coveted property than Mattel.
Mr. Goldner on Monday said Hasbro would most likely stick to small acquisitions that will help it achieve its long-term strategic goals. “We think we’re well positioned from a brand standpoint,” he said. His comments come after Bloomberg reported last week that Hasbro approached its larger rival last year to discuss a possible merger. Mr. Goldner didn’t specifically address that report.
Hasbro’s overall earnings rose 3.4% to $175.8 million. Sales in the U.S. and Canada rose 29% to $690.8 million. The effect of foreign exchange hurt the international segment, which posted a more modest gain of 2.9% to $690.8 million.
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