Hasbro Reports Financial Results for the Third Quarter 2012 (NYSE:HAS)

 

Rarrrrrrrrhgh! You're doing wrong.


...and now to actually read the report.

 

Well, expected decline, that's reassuring, at least.

I wonder whether the decline was greater or less than their anticipated decline.

 

It's also important to remember that 3rd quarter earnings are usually pretty low compared to Q2 and Q4, so it's better to compare year to year than quarter to quarter.

Looking at things from this perspective, they're doing a bit better than last year overall, though they've been much stronger in US/Canada than worldwide (though North America still makes up the majority of their sales). You can also see, not accounting for margin-based-decisions, an approximation of the correlations between their revenues and their profits. A one percent increase in revenues over last year at this time represents a nearly 20% increase in profit, meaning their operating profit was probably only 4-5% of their sales. That's a pretty low margin, I would say.

It seems like the big challenge, at least in the US, is that retailers aren't ordering as much, period, and are operating on a leaner inventory structure. This makes sense, I guess, if consumption isn't where they'd want it to be, as it allows retailers to react more quickly to changes in demand, and to decrease overhead, but it puts producers at a disadvantage not only in terms of bulk sales, but in their ability to leverage economy of scale in their production methods.

Games and preschool toys are an anchor around the neck of revenue (seemingly as usual), whereas Boys' division is a driving force, especially due to the recent Avengers movie and other Marvel lines.

Bot shots appeared to do well enough to worth mentioning, but the expected decline in TF sales likely relates back to this not being a movie year, and last year being one.

 

I've been doing some reading of reports recently, let's see what I can dig up...

So net earnings are down.

Huh, Bot Shots is classed a Game rather than a Boys toy. Oh well.

Okay bronies, start your bragging now  

TL; DR EDITION

 

Its funny how Hasbro included BOT SHOTS in the games category. Wonder what the numbers would have looked like if BOt Shots were included with Boys toys

 

They would make more money if they would just release cases with the figures people actually want.

Maybe a case that has 2 Airachnid , 2 Rumble , 3 Vehicons , and 1 Kup

 

Well a least the bronies have something to brag about

 

Meh. Summer. Kids are outside playing (or should be, anyway). Doesn't mean too much.

Besides, Christmas season is coming up.

 

I would've bought some toys if the darn toys actualy showed up in the darn toy stores y'know. :/

But hey the declines were expected weren't they? After all decrease always happens steadly during non-movie years.

 

Thanks, that an awful lot of reading  

Interesting to read, though you can draw some very troll-esque questions...

 

Maybe I would have bought more toys if more toys showed up. The most we've gotten in my area is one case of Wave 2 voyagers and one case of wave 4 deluxe, nothing beyond that. Probably because (and I hate to be a broken record) the shelves are clogged with endless waves of Bumblebee merchandise. There are still Bumblebees from the first day Prime RID came out in my area that are sitting on the shelves.

 

Need to increase profits? Better release some more Bumblebees then...

 

Yeah this^. the toys never hit past wave 2 in most areas and if any wave 3 showed up they were pounced on and only floods upon floods of bumblebees were left int he wake. Plus the reduction in sizes, the increase in prices its no wonder their damn profits were down. Cuple that with horrible time slots, changing time slots for the tv shows. Pick a time slot, stick to it and keep the shows fresh. Also keep a normal time for rescue bots, prime and dan vs since those are the only shows on the hub that seem to get ANY ratings.

 

Well I am glad we are getting new episodes at all.

 

Corrected  

 

Profits of a weekly 25-minutes toy commercial are down? I wonder why.... oh, that's right! Because they don't give us the toys we want and if they do they tend to be in a terrible quality and thus no one buys them!

 

Also, said 25-minute-toy-commercial didn't give us any new episodes whatsoever over the summer. It's a good thing they expected their sales to decline, because if they thought they'd go up with the quality of toys they've been putting out coupled with the hiatus, then I'd say they're crazy.

 

Probably more or less the same. Avengers (and thus, Marvel) were the big drivers for boys' profit this summer, and Bot Shots would have added to the pile of loot, but the downside would have been games would likely have looked even worse, especially with what appeared to be a dismal failure on the Battleship front. Overall, you're just talking about classification, and the total performance would have been the same.

I'm not sure what's more important for me to point out here: That Boys Toys (and Transformers) were still highly profitable, or that this post completely ignores a lot of the subtleties of case assortments and retail relations.

Sort of sad news, I guess, but understandable. The Hub was (and remains) a big expenditure for Hasbro, and I'm not sure they're getting the returns from it they wanted.