Back to top

Image: Bigstock

Hasbro Partners With Super Heroic to Launch Shoes & Apparels

Read MoreHide Full Article

Hasbro, Inc. (HAS - Free Report) announced that it entered a partnership with Super Heroic, Inc. to launch NERF-branded kids' apparels and footwears. The apparels and footwears will be a collaborative branding and will be gender-neutrally designed. Based on Hasbro’s motto of active play, these products are likely to address children’s demand.

The move underscores the company’s extensive reliance on partnerships and product innovation to drive growth. It has been one of the early movers to gauge the impact of Toys “R” Us liquidation amid peers like Mattel (MAT - Free Report) and JAKKS Pacific (JAKK - Free Report) . Ever since, Hasbro has been adapting rapidly to changing market landscapes and planning counter strategies.

In fact, the company’s strategies have been paying out well in recent quarters. Hasbro’s shares have gained 37.1% so far this year, outperforming the industry’s 7.4% rally.

 

 

Focus on Partnerships & Product Innovation

Hasbro continues to invest in innovation. It partnered with Paramount to enhance storytelling and content capabilities. Also, the company invested in Boulder Media — Hasbro’s animation studio — and grew digital capacities to drive sales. Hasbro continues to release Transformers franchise in all forms of entertainment — including movies, television and digital expressions. Given the company’s several innovative and productive plans for Transformers franchise over the next 10 years, revenues are expected to grow.

On the product innovation front, Hasbro launched several social games. Among them, Dungeons & Dragons was particularly successful. With the launch of DROPMIX, the company further strengthened its digital gaming revenues. Hasbro further plans to launch Black Panther, beyond the home entertainment window for holidays, including products in the MARVEL LEGENDS series for Black Panther.

Our Take

We believe that the above-mentioned move will strengthen Hasbro’s Entertainment and Licensing segment’s performances. Revenues at the Entertainment and Licensing segment rose 28% year over year to $96.5 million. However, the segment’s operating margin contracted to 8.2% compared with 28.8% in the prior-year quarter.

Zacks Rank & Another Stock to Consider

Hasbro currently sports a Zacks Rank #1 (Strong Buy). Another top-ranked stock in the Consumer Discretionary sector is Skechers (SKX - Free Report) , which also flaunts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Skechers’ long-term EPS are expected to increase 15%.

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>

Published in