As shares of Hasbro skyrocketed 14 percent on Monday, the company’s CEO Brian Goldner explained that the success could be seen right in the brand blueprint.
“It’s all about engaging the consumer across storytelling and innovation, a lot of digital engagement. We do it all around the world,” Goldner told “Mad Money” host Jim Cramer on Monday. “Our international business, category for category and region for region, we are up considerably.”
Hasbro has the exclusive rights to make toys, games and action figures, thanks to a valuable partnership with Disney. It covers well-known franchises movies such as “Star Wars”, “Frozen” and the older brands such as Nerf and My Little Pony.
Goldner explained that the company relies on proprietary consumer insights to get a clear sense of what customers really want. They use the feedback to guide product development and create entertainment experiences for fans around the brands they like.
The company reported fourth-quarter earnings of $1.64 a share, versus the $1.27 expected by Wall Street. It also had substantially higher than expected revenue, up 11 percent year over year.
Historically, Hasbro has focused on making toys for boys, but this quarter marked a pivot from that approach as the girls category, which includes the Disney princess line, grew 52 percent year over year. Cramer attributed some of the success to the fact that it took over the Disney doll business from Mattel.
This came just in time for the company’s robust breakdown of earnings, as it chose to stop reporting only data from the perspective of girls and boys. Instead, it now reports based on emerging brands, partner brands, gaming and franchise brands.
“We also felt like it really wasn’t contemporary. It’s not the way we look at our business to look at boys and girls anymore. So many of our brands are gender inclusive. If you play Nerf, you could be a boy or a girl. If you love ‘Star Wars’, you are a boy or a girl. You could be anybody,” Goldner said.
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