• Second quarter 2016 revenues grew 10% to $878.9 million; Absent a negative $17.7 million impact of foreign exchange, second quarter 2016 revenues grew 12%;
• Second quarter 2016 revenues grew 11% in the U.S. and Canada segment and 11% in the International segment; Absent the negative $17.0 million impact of foreign exchange, International segment revenues increased 15%; The Entertainment and Licensing segment increased 9%;
• Growth in all categories: Boys, Games, Girls and Preschool; Franchise Brand revenues up 3%; NERF and Play-Doh revenues posted double-digit growth; Partner Brand revenues grew 15% primarily driven by Star Wars, Disney Princess and Disney's Frozen;
• Operating profit increased 12% and net earnings increased 25% to $52.1 million or $0.41 per diluted share;
• Company returned $85.8 million to shareholders in the quarter; $63.9 million in dividends and $21.9 million in share repurchases.

On 18th July Hasbro, Inc. reported financial results for the second quarter 2016. Net revenues for the second quarter 2016 increased 10% to $878.9 million versus $797.7 million in 2015. Excluding a negative $17.7 million impact from foreign exchange, second quarter revenues increased 12%.

Net earnings for the second quarter 2016 increased 25% to $52.1 million, or $0.41 per diluted share, compared to $41.8 million, or $0.33 per diluted share, in 2015.

"Hasbro's focus on building brands, telling great stories, and creating the best play experiences in toys, games, digital gaming and consumer products is driving strong consumer and retailer demand for our brands globally," said Brian Goldner, Hasbro's Chairman, President and Chief Executive Officer. "The excellent execution of our team continues to deliver revenue and earnings growth, while we are investing in elevating our talent and capabilities around our Brand Blueprint. Our initiatives for the second half of the year feature innovative offerings for Hasbro Franchise Brands and Partner Brands, including newly announced products such as Furby Connect and Speak Out, and support for upcoming major feature films, Lucasfilm's Rogue One: A Star Wars Story and DreamWorks' Trolls."

"After a strong start to 2016, the team delivered another high quality quarter with revenue, operating profit and earnings growth," said Deborah Thomas, Hasbro's Chief Financial Officer. "We remain very focused on strategically investing to drive long-term growth and the execution of our strategy, while improving efficiencies and profitability over time. Our balance sheet is strong, including high quality inventory to meet our expectations for the year, and $924 million in cash. We have the financial strength to invest in growing Hasbro for the long-term while continuing our long-standing commitment of returning cash to shareholders."

Second quarter 2016 U.S. and Canada segment net revenues increased 11% to $425.9 million compared to $385.2 million in 2015. Growth in the Boys, Girls and Games categories more than offset a decline in the Preschool category. The U.S. and Canada segment reported operating profit growth of 23% to $58.0 million, or 13.6% of net revenues, compared to $47.1 million, or 12.2% of net revenues, in 2015.

International segment net revenues increased 11% to $401.1 million compared to $362.8 million in 2015. Revenue growth in the Boys, Girls and Preschool categories more than offset a decline in the Games category. On a regional basis, Europe grew 23%, Latin America declined 1%, and Asia Pacific was down 4%. Emerging markets revenues increased 5% in the quarter. Excluding an unfavorable $17.0 million impact of foreign exchange (FX), net revenues in the International segment grew 15%, increasing 24% in Europe ($2.1 million negative FX impact), 11% in Latin America ($12.2 million negative FX impact) and was essentially flat in Asia Pacific ($2.7 million negative FX impact). Emerging markets increased approximately 13% absent the impact of foreign exchange. As reported, International segment operating profit of $29.7 million was up 17%, or 7.4% of net revenues, compared to $25.4 million, or 7.0% of net revenues, in 2015.

Entertainment and Licensing segment net revenues increased 9% to $51.9 million compared to $47.6 million in 2015, driven by growth in Consumer Products and Digital Gaming. The Entertainment and Licensing segment operating profit increased 86% to $13.8 million, or 26.6% of net revenues, compared to $7.4 million, or 15.6% of net revenues, in 2015.

Second Quarter 2016 Product Category Performance

Second quarter 2016 Boys category revenues increased 4% to $355.1 million. Revenue growth in the quarter was driven by gains in Franchise Brand NERF, along with Partner Brand Star Wars as well as the addition of Yokai Watch.

Games category revenues for the quarter increased 8% to $227.7 million. Pie Face, Duel Masters, Yahtzee, Simon and Bop-It were among the brands contributing to growth in the quarter.

Girls category revenues increased 35% to $172.3 million. Hasbro's line of Disney Princess and Disney's Frozen fashion and small dolls along with revenue growth in Baby Alive led the increase in the quarter.

Preschool category revenues increased 5% to $123.9 million for the second quarter 2016. Revenue growth in Franchise Brand Play-Doh drove the revenue increase for the quarter.

Dividend and Share Repurchase

The Company paid $63.9 million in cash dividends to shareholders during the second quarter 2016. The next quarterly cash dividend payment of $0.51 per common share is scheduled for August 15, 2016 to shareholders of record at the close of business on August 1, 2016.

During the second quarter, Hasbro repurchased 270,611 shares of common stock at a total cost of $21.9 million and an average price of $81.00 per share. Through the first two quarters, the Company repurchased 745,611 shares of common stock at a total cost of $57.8 million and an average price of $77.44 per share. At quarter-end, $421.5 million remained available in the current share repurchase authorization.