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What's going on?
Hasbro’s no has been: the most valuable public toy-maker in the world and producer of the Furby reported second-quarter results on Monday that beat expectations.
What does this mean?
After Toys R Us threw a tantrum and filed for bankruptcy last year, Hasbro like kids around the world was heartbroken since the toy retailer was one of its biggest customers, making up almost 10% of all its sales.
Hasbros first quarter was pretty rocky but it looks like its through the worst of the effects from Toys R Us demise now, reporting that its revenue fell by only 7% nearly half the decline that was forecast. On top of that, it reported profits which were 65% higher than expected. This was thanks to cash coming in from Hasbros entertainment and licensing segment where it has partnerships with Disney and Marvel and sales from some of its classics like Monopoly (bags the top hat!).
Why should I care?
For markets: Investors played nice.
Investors liked the improvement and sent the stock up 13%. As the all-important holiday season approaches, Hasbro might just get its rubber ducks in a row at other stores in time to take full advantage of it the company says that its working with new retailers to meet the demand for its goods that Toys R Us used to fill.
The bigger picture: Give the people what they want.
Hasbro lost an important distribution partner in Toys Rnt Us (anymore), but that didnt sink its battleship. The company trucked on through the storm, surpassing expectations. Kids still want to build dinosaurs out of Play-Doh (obviously) Hasbros just had to navigate a new way of getting the Play-Doh, along with Action Man, G.I. Joe and the rest, to the masses. (tweet this)
Originally posted as part of the Finimize daily email.
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