On Monday, Hasbro Inc. reported financial results for the second quarter. Net revenues for the second quarter decreased 4 percent to $797.7 million versus $829.3 million last year. Excluding a negative $71.5 million impact from foreign exchange, net revenues increased 5 percent.
Net earnings for the second quarter were $41.8 million, or $0.33 per diluted share, compared to $33.5 million, or $0.26 per diluted share, last year. Net earnings for last year included an unfavorable tax adjustment of $13.8 million, or $0.10 per diluted share.
Looking at the quarter by major segment performance, U.S. and Canada segment net revenues increased 1 percent to $385.2 million, compared to $383 million last year. The segment’s results reflect growth in the Boys and Preschool categories. The U.S. and Canada segment reported operating profit of $47.1 million, essentially flat with $46.9 million last year.
International segment net revenues were $362.8 million compared to $396.8 million last year. Growth in the Preschool category was more than offset by declines in the Boys, Games, and Girls categories, while on a regional basis, growth in Latin America was offset by declines in Europe and Asia Pacific.
Second quarter net revenues in the Boys category increased 1 percent to $340.4 million, driven by year-over-year revenue gains in the Hasbro franchise brand Nerf, as well as shipments in support of Jurassic World and growth in Marvel and Star Wars products. These increases more than offset the anticipated decline in Transformers, which faced difficult comparisons versus last year’s shipments in support of the theatrical release of Transformers: Age of Extinction.
The Girls category revenues declined 22 percent in the second quarter to $127.5 million. Furby was the leading driver of this decline, along with smaller declines in franchise brands My Little Pony and Nerf Rebelle in the quarter. Growth in Play-Doh Dohvinci and shipments of Disney Descendants partially offset these declines.
Preschool category revenues increased 14 percent in the second quarter to $118.1 million. Growth in Play-Doh and shipments of Jurassic World more than offset revenue declines in Playskool products.