(Reuters) – Hasbro (NASDAQ:) on Thursday reported a smaller-than-expected decline in second-quarter sales as steady demand for digital games offset a decline in toy sales and cost-control strategies helped the toy maker beat profit expectations.
The company’s shares rose 6% in premarket trading as Hasbro reported a rise in margin for the quarter to 21.3% from a 15.6% decline a year earlier.
The maker of toy guns Nerf’s turnaround strategy of cutting expenses and keeping inventory low in the face of an industry-wide slump in demand for toys has helped improve the company’s results.
According to LSEG data, the company’s quarterly revenue fell 18% to $995.3 million, which is less than the 22.02% decline estimated by analysts.
On an adjusted basis, Hasbro earned $1.22 per share in the second quarter, compared with estimates of 78 cents.
Hasbro now projects full-year revenue from its consumer products segment to decline by 7% to 11%, down from a 7% to 12% decline in February.
Barbie doll maker Mattel (NASDAQ:) beat Wall Street estimates for second-quarter profit Tuesday, helped by tight cost controls even as the company reported an unexpected drop in sales.
