Please ensure Javascript is enabled for purposes of website accessibility

Disney-Themed Toys Propel Hasbro Sales

By Jennifer Saibil - Feb 11, 2020 at 12:12PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Frozen 2 and Star Wars contributed to a super holiday season for the toy maker.

Although other toy makers and retailers suffered over the holidays, Hasbro (HAS 0.05%) scored, backed up by toy licenses for Disney-themed movies.

Soaring sales

Hasbro's 2019 fourth quarter, which included the 2019 holiday season, saw a 3% increase in revenue year over year, bringing the total to $143 billion, including $13 million in unfavorable foreign exchange.

Girl dressed up as a princess.

Image source: Getty Images.

A major portion of the sales came from the company's Partner brands division, which produces entertainment-based products. Revenue increased almost 50% to $408.5 million for the quarter. CFO Deborah Thomas said "Our teams worked extremely hard and executed at a high level this holiday, driving fourth quarter and full-year revenue and profit growth while also diversifying our supply chain and preparing to close a major acquisition." 

The acquisition she mentioned is eOne, which didn't go through until the first quarter of 2020, but the preparation for the deal impacted financials in the 2019 fourth quarter.

Disney license pays off

Hasbro got the license to produce Disney-themed toys in 2015 after the entertainment king pulled its licenses from Hasbro rival Mattel, with whom it had worked since 1955. "Disney Princess was probably the greatest coup that Hasbro has had in the last three decades," Gene Del Vecchio, an ad exec, told Bloomberg at that time. Four years later it's even more clear.

Mattel has been struggling, seeing declining sales over the holiday. Hasbro saw a turnaround after its own struggles nearly caused a buyout by Mattel in 1996. Then it got into movies, starting with Transformers, and has since come out as the top toy U.S. maker.

Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Hasbro. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Hasbro, Inc. Stock Quote
Hasbro, Inc.
$80.62 (0.05%) $0.04
Mattel, Inc. Stock Quote
Mattel, Inc.
$23.21 (-1.40%) $0.33

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/16/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.