Hasbro 2015 Annual Report Download - page 44

2015 release of JURASSIC WORLD, MARVEL was supported by the May 2015 release of AVENGERS: AGE
OF ULTRON and STAR WARS was supported by the December 2015 release of STAR WARS: THE FORCE
AWAKENS. These benefits were partially offset by lower 2015 net revenues from Franchise Brand
TRANSFORMERS in a non-movie year as compared to 2014 with the June theatrical release of
TRANSFORMERS: AGE OF EXTINCTION.
Games The games category grew 1% in 2015 compared to 2014. Higher net revenues resulted from
Franchise Brands MAGIC: THE GATHERING and MONOPOLY as well as from other games brands,
including, but not limited to, PIE FACE, DUEL MASTERS, DUNGEONS & DRAGONS, LIFE, OUIJA, RISK,
RUBIKS, TROUBLE and YAHTZEE. These higher net revenues were almost wholly offset by lower net
revenues from various other games brands, including, but not limited to, ELEFUN & FRIENDS, JENGA and
TABOO.
Girls The girls’ category declined 22% in 2015 compared to 2014, primarily due to expected lower net
revenues from FURBY products, as well as declines in MY LITTLE PONY, NERF REBELLE and LITTLEST
PET SHOP. Core MY LITTLE PONY revenues increased but were, however, more than offset by lower net
revenues from the MY LITTLE PONY EQUESTRIA GIRLS products. These declines were only partially offset
by the first full year of net revenues from the PLAY-DOH DOH VINCI brand, the 2015 introduction of the
DISNEY’S DESCENDANTS product line and initial shipments of DISNEY PRINCESS and FROZEN products
which became available at retail in January 2016.
Preschool The preschool category grew 17% in 2015 compared to 2014. Higher net revenues from
Franchise Brand PLAY-DOH and Partner Brands JURASSIC WORLD and STAR WARS were only partially
offset by lower revenues from the Company’s core PLAYSKOOL product line. Consistent with the boys’
category, preschool category net revenues from Partner Brands benefited from the strong theatrical line-up
discussed above.
2014 versus 2013
Net revenue growth in the boys and girls categories in 2014 compared to 2013 more than offset lower net
revenues from the games and preschool categories.
Boys The boys’ category grew 20% in 2014 compared to 2013. Higher net revenues from Franchise Brands
TRANSFORMERS and NERF and Partner Brand MARVEL were partially offset by expected lower net sales of
BEYBLADE products. To a lesser extent, net sales from STAR WARS products also contributed to boys’
category growth in 2014.
2014 boys category growth reflects successful execution of Hasbro’s Franchise Brand-focused strategy in
conjunction with its brand blueprint. Net revenues from Franchise Brand TRANSFORMERS products benefited
from higher net revenues, including higher product sales and royalty income, related to products based on the
2014 major motion picture release of TRANSFORMERS: AGE OF EXTINCTION, as well as animated television
programming in 2014 and 2013.
Sales of MARVEL products, primarily SPIDER-MAN and AVENGERS products, increased in 2014
compared to 2013. SPIDER-MAN was supported by the 2014 major motion picture release of THE AMAZING
SPIDER-MAN 2. 2014 net revenues also included sales related to the 2014 theatrical releases of CAPTAIN
AMERICA: THE WINTER SOLIDIER and GUARDIANS OF THE GALAXY.
Games The games category declined 4% in 2014 compared to 2013. Growth from Franchise Brands
MAGIC: THE GATHERING and MONOPOLY as well as other games brands, including SIMON, specifically
SIMON SWIPE, THE GAME OF LIFE, TROUBLE and DUNGEONS & DRAGONS were more than offset by
lower net revenues from other games brands, primarily DUEL MASTERS, ANGRY BIRDS and TWISTER.
Girls The girls category grew 2% in 2014 compared to 2013, primarily related to higher net revenues from
Franchise Brands, MY LITTLE PONY and NERF REBELLE, partially offset by lower net revenues from
Franchise Brand LITTLEST PET SHOP and Challenger Brands FURBY and FURREAL FRIENDS.
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