Hasbro (HAS), Mattel (MAT): What have these toymakers planned for the near term?

Main toymakers Hasbro Inc. (NASDAQ: HAS) and Mattel Inc. (NASDAQ: MAT) witnessed income and revenue progress throughout their most up-to-date quarters. The businesses have seen wholesome efficiency from most of their manufacturers and so they have been investing considerably of their leisure choices. Because the necessary vacation season approaches, right here’s a have a look at what these toymakers have deliberate within the close to time period:

Income and earnings

Within the second quarter of 2022, Hasbro’s revenues elevated by 1% year-over-year to $1.34 billion, helped by progress in its Client Merchandise, and Wizards of the Coast and Digital Gaming segments. Mattel’s internet gross sales for a similar interval rose 20% YoY to $1.23 billion, pushed by double-digit gross sales progress in its North America and Worldwide segments.

For Q2, Hasbro reported adjusted EPS of $1.15, which was up 10% YoY whereas Mattel delivered adjusted EPS of $0.18, reflecting a progress of $0.15 from the year-ago interval.

For the total yr of 2022, Hasbro expects income to develop in low-single digits on a continuing foreign money foundation and working revenue to develop in mid-single digits to attain an adjusted working revenue margin of 16%. For FY2022, Mattel expects internet gross sales to develop 8-10% YoY in fixed foreign money and adjusted EPS to vary between $1.42-1.48.

Manufacturers and classes

In the course of the second quarter, positive aspects from standard manufacturers similar to Play-Doh, My Little Pony, and Energy Rangers helped drive a 7% progress in income for Hasbro’s Client Merchandise phase. A 15% progress in Tabletop income led by Magic: The Gathering helped drive a 3% enhance in income for the Wizards of the Coast and Digital Gaming phase.

For the total yr of 2022, Hasbro expects low single digit income progress for Client Merchandise and excessive single-digit to low double-digit income progress for the Wizards phase on a continuing foreign money foundation.

In Q2, Mattel noticed billings progress for Dolls and Automobiles led by manufacturers similar to Barbie, Polly Pocket, and Scorching Wheels. The Challenger classes noticed a 48% rise in billings pushed by Motion Figures and Constructing Units.

For FY2022, gross billings are anticipated to develop for Dolls, Automobiles and the Challenger classes, pushed by Polly Pocket, Scorching Wheels and Motion Figures. Billings for Dolls will profit from the relaunch of the Monster Excessive model. Billings for the Toddler, Toddler and Preschool phase can also be anticipated to develop led by Fisher-Worth and Thomas & Buddies.

Leisure alternative

Each Hasbro and Mattel need to maximize the worth of their manufacturers within the leisure area. In Q2, Hasbro noticed positive aspects in its merchandise for the Marvel and Star Wars franchises. The corporate has over 200 tasks in growth throughout movie and tv. There are over 35 growth tasks for Hasbro manufacturers, which embrace content material for Transformers, Dungeons & Dragons, My Little Pony and Energy Rangers. Regardless of a double-digit decline in its Leisure phase throughout Q2, Hasbro expects to see income progress for the total yr on this division.

Mattel is engaged on capturing the total worth of its IP in extremely accretive enterprise verticals like content material, shopper merchandise and digital experiences. The corporate has a Barbie film popping out subsequent yr that will probably be launched by Warner Bros. Additionally it is engaged on motion pictures and collection based mostly on titles like Matchbox, Monster Excessive, and He-Man and the Masters of the Universe. Mattel sees big alternative in shopper merchandise and digital experiences.

FY2023 outlook

Mattel goals to attain excessive single-digit internet gross sales progress in fixed foreign money and adjusted working earnings margin of 16-17% for FY2023. The corporate’s objective for EPS is to exceed adjusted EPS of $1.90 for the yr.

Click on right here to learn the total transcripts of Hasbro and Mattel’s Q2 2022 earnings convention calls