Hasbro and Mattel have both reported their results for the first quarter of 2014, and one toy company certainly faired better than the other.
Mattel’s worldwide sales dropped 5 percent to $946.2 million and the company reported a net loss of $11 million, its first loss in five years.
Meanwhile, Hasbro reported a 2 percent gain in worldwide revenue to $679.5, with net earnings of $32.1 million, a vast improvement over the $6.7 million net loss the company reported in 2013.
Mattel’s losses have been largely placed on the shoulders of one slender fashion doll, Barbie, with sales of the brand dropping 14 percent in the first quarter. Fisher-Price sales were also weak, dropping 6 percent, which was actually an improvement over last year when the brand lost 7 percent in the same time period. Some of the company’s core brands held their own though, with sales of Hot Wheels and American Girl improving 2 percent and 5 percent, respectively. Mattel noted that among its other brands, lines for Disney’s Frozen and Princesses brands fared well. The company pointed to ongoing inventory issues as one of the biggest drivers of its poor Q1 returns.
Franchise brands and the girls’ category drove the growth at Hasbro, which was offset by slower growth in the boys’ category and declines in games and preschool. Boy toy sales grew only 2 percent and were hurt by year-over-year declines in Beyblade sales. My Little Pony and the new Nerf Rebelle line led the explosive 21 percent growth in the girls’ category. After the girls’ category, Hasbro’s franchise brands such as Monopoly, Nerf and Transformers, saw the most growth, with revenues increasing 15 percent. Entertainment and licensing sales also saw increases of 13 percent.