PAWTUCKET, R.I. — The toy maker Hasbro Inc. said second-quarter net income dropped 25 percent on weak sales in most product categories. But higher prices and cost-cutting helped the maker of Monopoly, Nerf, and My Little Pony beat analysts’ earnings expectations. Its shares rose 4 percent.
Toy makers make most of their sales during the second half of the year, including the holiday season. But the second quarter can give indications about the strength or weakness of demand.
Revenue fell 11 percent in the quarter, missing Wall Street expectations. That reflected lower sales in Hasbro’s boys, girls, and games categories. Hasbro said that was partly planned; the company is working to make inventory more in line with when people buy toys, later in the year.
Hasbro’s results contrasted with those of its larger rival Mattel Inc., which last week said second-quarter net income rose 20 percent.
Hasbro’s net income fell to $43.4 million, or 33 cents per share, from $58.1 million, or 42 cents, a year earlier. But it is flat with adjusted results from a year before, excluding one-time items last year for a tax adjustment and investments in Hasbro’s gaming business.
Revenue fell to $811.5 million from $908.5 million.