Toy company Hasbro managed to one-up its competitor, Mattel, by taking a huge contract that helped it post record profits. Hasbro's recent earnings report must have astounded investors especially in light of Mattel's own disappointing financial results.
The Washington Post reported that Hasbro's earnings soared largely due to its decision to bid against Mattel in securing the rights to Disney's princesses. Winning the Disney contract allowed the toy company, which is widely known for its Monopoly board game, to more than double its sales in 2016.
The feat is an amazing one considering the tough competition in the toy industry. With Hasbro holding the rights to Disney's princesses, it is holding an ace that can be used against other toy makers.
Back in 2014, Hasbro won the contract that allows it to manufacture and sell dolls of Disney's princesses, including the rights to the "Frozen" dolls. However, it was not until 2016 that it started producing and shipping the toys.
The dolls fall under Hasbro's girls category, which contributed $1.19 billion to the toy company's total revenue in 2016. Other games and toys also did not do badly, which resulted in Hasbro's game revenue to climb 9% year over year in 2016.
Zacks reported that Hasbo's shares surged after it reported its latest financial results. The site also reported that the toy maker's earnings per share surpassed its expectations due to the huge jump in sales of toys within its girls category.
Brian Goldner, Hasbro's chairman, president and CEO, is optimistic that the toy maker will be able to sustain the high-profit levels that it has recently achieved. Certainly, continuing to hold the contract to produce Disney dolls will help Hasbro beat its competition when it comes to sales and revenue.
Hasbro recently allowed its customers to vote on the tokens for its Monopoly board game, Jobs & Hire previously reported.