Shares in the toy maker are up 5% this afternoon, while Mattel is down 1.2% — and touched a 52-week low — after Disney saidthat it’s moving the popular doll business beginning in 2016. Hasbro picked up global rights, except in Japan, to market the playthings based on Frozen as well as Disney Princess characters from Cinderella, Beauty And The Beast, and The Little Mermaid.
“Our strategic thought leadership and innovation has led to the steady growth of our girls business over the last several years demonstrating that we have a true understanding of girls globally and how today’s girls want to play,” Hasbro CEO Brian Goldner says. Disney Consumer Products president Bob Chapek adds that the entertainment company is “excited” to expand “a robust partnership that has already yielded tremendous results across our Star Wars and Marvel properties.”
It’s a blow to Mattel, though: Its Q2 revenue fell 9% including a 15% decline in Barbie sales. “While our positive view towards Mattel has in part been based on a low financial bar being set by the Street for 2014, we may now need to question if that bar is low enough,” MKM Partners Eric Handler said in July.
Hasbro says that revenues in its Girls category grew to $1B+ last year, from about $300M a decade ago, helped by “new brands and investment in re-imagining existing brands such as My Little Pony.”