China Toy Fair


Jakks Pacific Reports Third Quarter Results

Disney Frozen Snow Glow Elsa doll

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.

Hasbro Franchise Brands Show Strength in Third Quarter

Hasbro logoToday, 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...]

Mattel Reports Third Quarter Financial Results, Including Lower Barbie and Fisher-Price Sales

Mattel_logoLast 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...]

Minecraft Will Join Microsoft Studios

Minecraft-gamesMicrosoft Corp. has reached an agreement to acquire Mojang, the Stockholm-based game developer behind the popular Minecraft franchise.

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...]

Thanks to The Lego Movie, Lego Is World’s Largest Toy Maker

LEGO_LogoAs reported by The Wall Street Journal today, Lego is currently the world’s largest toy maker.

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.

A sequel to The Lego Movie, The Lego Movie 2, is scheduled for release in 2017, and Warner Bros. has already set the release for the Ninjago movie next 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...]

Toys “R” Us Inc. Reports Second Quarter Financial Results

ToysRUsLogo copyToday, 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.

Alleghany Capital Corporation Invests in Jazwares

jazwaresAlleghany Capital Corporation (ACC), a wholly owned subsidiary of Alleghany Corporation, has acquired an interest in Jazwares LLC.

Judd Zebersky, CEO and president of Jazwares, commented, “Jazwares has grown significantly over the past number of years by delivering high quality, must-have toys and consumer electronics to children worldwide. As we pursue our next stage of growth, we are enthusiastic to partner with ACC given its unique long-term perspective and history of backing entrepreneurial management teams.”

Valufinder Group Inc. acted as financial advisor while Seyfarth Shaw LLP acted as legal counsel to ACC. Marketing Management Group Inc. acted as financial advisor and Pryor Cashman LLP acted as legal counsel to Jazwares.

Mattel’s First Quarter Results Include Gross Sales Decline for Top Brands

logo_Mattel logoMattel reported 2014 first quarter financial results, which included a decline in worldwide sales for Barbie, but strength in some of the company’s other girls brands.

For the first quarter, worldwide gross sales for Mattel girls and boys brands were $656.9 million, down 5 percent versus the previous year. This included a decline in worldwide gross sales for the Barbie brand of 14 percent. Worldwide gross sales for Mattel’s other girls brands increased 4 percent on the strength of Disney Princess and Ever After High, partially offset by Monster High. [Read more...]

Toys “R” Us Executives Outline TRU Transformation Strategy

toysrusToys “R” Us Inc. executives recently outlined a four-point strategy, entitled TRU Transformation, intended to improve the company’s operational performance. At presentations for investors, industry analysts, and the media this past Wednesday, Toys “R” Us chairman of the board and chief executive officer Antonio Urcelay and president Hank Mullany discussed priorities and actions intended to slow the company’s sales decline, stabilize cash flow, and improve EBITDA to effectively position the company to grow revenue and profits next year and beyond.

“As we look to the future, our strategy will establish a path to sustainable business growth, building upon the company’s unique strengths,” Urcelay said.

TRU Transformation will focus on four key priorities: [Read more...]

NPD Reports Xbox One and PlayStation 4 Powered Video Game Sales

According to the U.S. Games Industry Sales analysis by The NPD Group’s Liam Callahan, February hardware sales increased by 42 percent over the prior year, due to a more than 60 percent increase in console hardware sales. These strong year-over-year increases are due to the success of the Xbox One and PlayStation 4.

The analysis also showed that total video game sales in February were $887 million, a change of 9 percent compared to February 2013. This is credited to strong growth in hardware and a slight rise in accessory sales. Total software sales—across the console, portable, and PC categories—were [Read more...]