Hasbro (HAS) Boosts Offerings With Creative Kids Partnership
Hasbro, Inc. HAS recently entered into a multi-year, multi-national licensing agreement with Creative Kids to develop and market the latter’s Play-Doh branded line of products. These products comprise toys, air dry compounds and modeling clay. The products are scheduled to launch in spring 2022.
The initiative involves the amalgamation of the companies’ product development and marketing teams to support the expansion of the offerings. The collaboration involves working on a multitude of compounds new to Play-Doh products, including modeling clay and other assortments to offer new creative play experiences.
Jess Richardson, vice president, Hasbro Global Licensing, stated, "This strategic partnership with Creative Kids allows the Play-Doh brand to expand upon that vision, offering kids exciting new innovative compounds to further unlock their creativity and imagination."
Increased Focus on Partnerships
Hasbro continues to focus on licensing partnerships to drive growth. During third-quarter fiscal 2021, the company benefitted from the launch of Hasbro's Peppa Pig and PJ Masks toy and games lines. Also, it reported growth in its licensed digital gaming business owing to the strong performance of Magic: The Gathering Arena Mobile. The company initiated a licensing program to support the movie launch of My Little Pony: A New Generation with a dedicated My Little Pony shop on Amazon and cross-category campaigns at several major global retailers.
Going forward, the company plans to create a significant global merchandise program and support future partner brand initiatives, which includes Disney+ for Star Wars and Marvel along with Disney Princess and Frozen. Also, Hasbro will support the franchise with new additions in the upcoming periods.
Price Performance
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Coming to the price performance, shares of Hasbro have gained 9% in the past year against the industry’s 13.7% decline. Notably, the company is benefiting from new product launches, strategic partnerships and a strong product line-up. This along with an increased focus on the gaming portfolio bodes well for the company. Going forward, the company continues to focus on retailers to expand their online offerings. However, coronavirus-related woes persist. This along with increased expenses to support new digital game launches and toy and game business is a concern. Earnings estimates for 2022 have remained unchanged in the past 30 days, limiting the upside potential of the stock.
Zacks Rank & Key Picks
Hasbro currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the Zacks Consumer Discretionary sector include Hilton Grand Vacations Inc. HGV, Bluegreen Vacations Holding Corporation BVH and Century Casinos, Inc. CNTY.
Hilton Grand Vacations sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 411.1%, on average. Shares of the company have increased 62.1% in the past year.
The Zacks Consensus Estimate for Hilton Grand Vacations’ 2022 sales and earnings per share (EPS) suggests growth of 27.7% and 154.4%, respectively, from the year-ago period’s levels.
Bluegreen Vacations flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 695%, on average. Shares of the company have surged 158.7% in the past year.
The Zacks Consensus Estimate for Bluegreen Vacations’ 2022 sales and EPS indicates a rise of 7.6% and 0.4%, respectively, from the year-ago period’s levels.
Century Casinos carries a Zacks Rank #2 (Buy). The company has a trailing four-quarter earnings surprise of 758.9%, on average. Shares of the company have increased 87.1% in the past year.
The Zacks Consensus Estimate for Century Casinos’ 2022 sales and EPS suggests growth of 16.9% and 44.7%, respectively, from the year-ago period’s levels.
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