On Thursday, Toys “R” Us Inc. reported financial results for the third quarter ended November 1. Adjusted EBITDA for the third quarter improved by $43 million compared to the prior year period, while consolidated gross margin, as a percentage of net sales, increased by 90 basis points compared to the prior year period. Gross margin dollars were $908 million, compared to $896 million for the prior year period, an increase of $12 million.
Gross margin, as a percentage of net sales, was 36.9 percent, an increase of 0.9 percentage points versus the prior year period. The margin improvement was primarily attributable to the domestic segment, which increased by 1.8 percentage points, to 35.3 percent, as a result of promotional efficiencies. [Read more...]
As reported by Bloomberg News on Wednesday, Nintendo posted second-quarter profits that beat analyst estimates, helped by a weaker yen that boosted the value of overseas sales and demand for new games, including the company’s Super Smash Bros. and Mario Kart 8. Net income was 24.2 billion yen, or $224 million, for the three months ended September 30, compared to an 8 billion yen loss a year earlier.
The company booked a 15.5 billion yen gain in the fiscal first half from the weaker Japanese currency. Second-quarter sales fell to 96.7 billion yen from 115 billion yen a year ago, but Nintendo left unchanged its forecast for full-year profit of 20 billion yen and sales of 590 billion yen. The company maintained its projection to sell 3.6 million Wii U consoles across the full year.
In a statement, Nintendo also maintained its full-year sales targets for the 3DS handheld player and software titles for both. The newest version of the 3DS, which features additional buttons and a faster processor, went on sale in Japan on October 11; and Super Smash Bros. for 3DS, which was released in Japan on September 13, and in North America and Europe on October 3, sold 3.2 million units as of the end of the month. The company is also entering the multi-billion-dollar, collectible toy market with its amiibo figurines, which let players enter a Nintendo character into a game through the Wii U’s GamePad tablet.
Jakks Pacific Inc. reported results for the company’s third quarter ended September 30. Net sales for the third quarter increased to $349.4 million, up 12 percent from net sales of $310.9 million reported in the comparable period last year. Reported net income for the third quarter increased 16 percent to $44.1 million, or $1.03 per diluted share, compared to reported net income last year of $36.6 million, or $1.11 per diluted share.
Net sales for the nine months ending September 30 increased 12 percent to $556.0 million compared to $495.2 million last year. Reported net income for the nine-month period was $18.7 million, or $0.61 per diluted share. This compares to a net loss for the first nine months last year of $37.8 million, or $1.73 per diluted share. Strong sales of the Frozen Snow Glow Elsa doll and Light Up Musical Dresses, Disguise Halloween offerings, Nintendo plush and figure products, and licensed large-scale figures contributed to the company’s improved third quarter results.
Today, Hasbro Inc. reported financial results for the third quarter, in which net revenues increased 7 percent to $1.47 billion, compared to $1.37 billion last year. Foreign exchange had an unfavorable $10.8 million impact on third quarter revenues.
Reported net earnings for the third quarter were $180.5 million, or $1.40 per diluted share, compared to $126.6 million, or $0.96 per diluted share, last year. Adjusted net earnings for the third quarter were $187.8 million, or $1.46 per diluted share, excluding a pre-tax charge of $11.6 million, or $0.06 per diluted share, related to the restructuring of the company’s investment in the Hub Network joint venture. By comparison, adjusted net earnings for the third quarter last year were $172.5 million, or $1.31 per diluted share.
U.S. and Canada segment net revenues increased 4 percent to $764.3 million compared to $735.6 million last year. International segment net revenues increased 11 percent to $649.3 million compared to $582.7 million last year, reflecting 7 percent growth in Europe, 24 percent growth in Latin America, and 11 percent growth in the Asia Pacific region, as well as growth in the Boys, Girls, and Preschool categories. In total, Emerging Markets revenues increased 29 percent. [Read more...]
Last Thursday, Mattel Inc. reported third quarter financial results, including net income of $331.8 million for the quarter, or $0.97 per share. This includes a negative impact of $0.05 per share from Mega Brands integration costs and a tax benefit of $0.04 per share. This compares to last year’s third quarter net income of $422.8 million, or $1.21 per share, which included a tax benefit of $0.05 per share.
For the quarter, net sales were $2.02 billion, down 8 percent compared to $2.21 billion last year, while on a regional basis, third quarter gross sales decreased 7 percent in the North American region. For the international region, gross sales decreased 7 percent, including an unfavorable impact of currency exchange rates of 1 percentage point. [Read more...]
Under the terms of the agreement, the Mojang team will join Microsoft Studios. Microsoft will acquire Mojang for $2.5 billion, and expects the acquisition to be break-even in fiscal year 2015 on a GAAP basis. Subject to customary closing conditions and any regulatory review, the acquisition is expected to close later this year.
Available across multiple platforms, players have downloaded Minecraft more than 100 million times, on PC alone, since its launch in 2009. Minecraft is also the most popular online game on Xbox, and the game’s community is among the most active in the industry, with more than 2 billion hours played on Xbox 360 alone in the past two years. [Read more...]
Denmark’s Lego A/S said that revenue during the first six months rose 11 percent, boosted by The Lego Movie products. This makes Lego the biggest toy company in the world in terms of both revenue and profit, ahead of Mattel Inc. The jump also puts Lego slightly ahead of Mattel in sales for the first six months of the year.
The licensing of the movies themselves isn’t a significant element of sales for Lego compared with the sales of movie-related boxes of bricks. Overall first-half sales for Lego rose to 11.5 billion Danish kroner ($2.03 billion) from 10.4 billion kroner in the same period last year, the company said. [Read more...]
Today, Toys “R” Us Inc. reported financial results for the second quarter ended August 2. Consolidated net sales were $2.4 billion, an increase of 2.7 percent versus the prior year period. Excluding the impact of foreign currency translation, which increased net sales by $7 million, the company experienced an improvement in net sales of $56 million, or 2.4 percent. The growth was primarily a result of an increase in comparable store net sales in both the Domestic and International segments, as well as new stores in the International segment.
Second quarter highlights include domestic comparable store net sales up 1.5 percent, primarily driven by increases in the core toy, learning, and entertainment (which includes electronics, video game hardware and software) categories. International comparable store net sales were up 2.5 percent primarily due to increases in the core toy, learning and seasonal categories.
Adjusted EBITDA was $81 million, compared to $74 million in the prior year, an increase of $7 million, or 9.5 percent.