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Good news!
May 7, 2008
If you have been reading this blog for the last couple of days you know that we have things to be concerned about, but let’s take a minute and look at some good signs.
Toy R Us is doing great
The toy industry needs a healthy Toys R Us and it appears that we have one. Jerry Storch, Chairman and CEO, and his team have done an outstanding job of turning around the toy industry flagship chain. The company’s earnings went up almost 40% in the 4th quarter. Storch listed number of reasons for the turn around when he stated: “Better gross margins, improved comparable store sales and the positive impact of new store openings all contributed to higher net earnings for both the fourth quarter and the year. These results are especially gratifying given the difficult economic climate and the unique challenges experienced by the toy industry during the past year.”
I am sure it’s all of that but I like to think it’s because Toys R Us decided to go back to being the “World’s Greatest Toy Store” instead of the world’s greatest toy department.
“Iron Man” has a big box office
A great entertainment license is always good for the industry so the big opening for “Iron Man” was welcome news. According to AP, Iron Man “… hauled in $100.7 million during its opening weekend and $104.2 million since debuting Thursday night, the second-best premiere ever for a nonsequel, according to studio estimates.”
Disney theme park visits are holding steady
It may be a tight economy but people still want to be play. The headline in a Brooks Barnes, New York Times article says it all: “No Signs of a Slowdown at Disney’s Park.” People willing to pay money to go to Disney World are willing to pay money for a toy or a game. They want to, maybe need to, be entertained.
Hasbro’s Profits Up 14%
A combination of no recalls last year plus strong showings by “Transformers” and “Littlest Pet Shop” products resulted in a big surprise to financial analysts as Hasbro out performed expectations. According to AP: “Hasbro's sales grew 13 percent to $704.2 million from $625.3 million a year ago. International revenue rose 22 percent to $248.3 million, while revenue in the U.S. and Canada segment grew 6 percent to $428.5 million.” A healthy Hasbro, just like a healthy Toys R Us, is good for everybody in “toy nation.”
ASTRA show booths are almost sold out
It's not just the big boys and girls who are giving us good news. ASTRA reports that it has signed up 250 booths so far this year. That is up from last year's record of 175. This tells us that the Specialty channel is stepping up its marketing efforts rather than retrenching. We would all like to see ASTRA also have a record year in retailer attendance.
So smile, some things are actually going in the right direction.
Posted by Richard Gottlieb on May 7, 2008 | Comments (0)
