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Transformers Sales Fall, Better Than Expected in Hasbro Q3 2015 Earnings Report
BaCon - Monday, October 19, 2015


The numbers are in from the latest Hasbro Q3 2015 Earnings Report with word that Transformers sales declined over one-third. Furby, My Little Pony and Littlest Pet Shop also saw declines. Hasbro CEO Brian Goldner responded to a question about shirking shelf space. Citing the decline in sales due mostly to this being an off-year from the movie. Sales are actually better than expected thanks to the new Robots in Disguise cartoon, new product lines, and other Transformers related initiatives such as licensing and games. Read on for more details and quotes.
Last year the brand benefited from the Transformers Age of Extinction film. We continue to plan the future of Transformers franchise in all forms of entertainment including movies, television and digital expressions. Transformers Robots in Disguise is airing on Cartoon Network in the US and many international markets and Transformers Rescue Bots is also airing on networks around the world.
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These gains were more than offset by declines in a number of brands including Transformers, Furby, My Little Pony and Littlest Pet Shop.
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The decline in revenue was primarily driven by lower Transformers revenues in the segment the year after the movie.
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Q: Secondly, with Transformers, tell me if I am wrong but it just seems from an observation standpoint the shelf space for Transformers has been shrinking, we are seeing far fewer SKUs. And I am just curious to think -- get your opinion on how that product's evolution will take place over the next couple of years and at least in non-movie years?

A: Brian Goldner: ...Year to date Transformers is actually bucking the trend of a typical boys action property the year following the movie. In fact it is down by just over one-third which as you know is far better than one would expect in a non-movie year and that is because of the amount of entertainment. We are also seeing in our preschool Transformers growth year to date in preschool Transformers, our Transformers Rescue Bots product line and being supported again by content. Our licensing year to date for Transformers is up. So I think maybe we would need to take a broader perspective on the performance of Transformers and look more globally because it is performing quite well in a non-movie year, certainly was down in the quarter and down more typical in the more typical range in the quarter. But again I think the team has done a great job, great innovation, an expanded product line and again down below those trends one would expect.


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