Sean P. McGowan - Needham & Co. LLC
Hi. Thanks. Also I have a couple, if I can. When you look at the royalties and entertainment revenue that comes in and then you allocate them around the brands, can you talk a little bit about what that says about the growth of – would TRANSFORMERS have been up without such payments? And I'm not trying to say that's not legitimate revenue. It is. I'm just trying to get a sense of whether it's the payments that are driving that growth or is that actual sales of toys? And similarly, what does it say for Girls if – you had a lot of things going right on the entertainment licensing in the quarter for Girls and it's still down?
Brian D. Goldner - President, Chief Executive Officer & Director
Yeah. I think we noted why Girls was down. We're up against a very big FURBY comp, and, of course, in the first quarter, Easy Bake was down because, again, it's very holiday-sales oriented. And there's a bit of impact with some inventories based on the West Coast port strike and some delays around a little bit of product. TRANSFORMERS would have been up without the entertainment payment. So I think that I would turn it around a little bit. I would say that our objective is to continue to grow our Franchise Brands across a number of dimensions. We're going to continue to be the preeminent creator of toys and games through great innovations and consumer insight.
But through storytelling, we are going to bring the power of our brands to other consumer product categories. That is the nature of the way fans and enthusiasts want to enjoy brands today. We are following the consumer, and they're telling us that that, in fact, is the most contemporary way to proceed, and that is modern-day brand building. And so we think that we're offering both a differentiated approach to the market as well as something that's incredibly compelling to our fans, enthusiasts, kids and other audiences around the world. And that's what's being borne out. The blueprint is – the strategy that we're employing and we see those revenues from our consumer products business as important as and an opportunity to expand our operating profit beyond just what our Toys and Games business can provide. But recognize that our franchise – but I recognize that our Franchise Brands inherently even within our toy business, enjoy higher operating margin than our partner brands because, of course, they have lower royalties to be paid out.
Sean P. McGowan - Needham & Co. LLC
Okay. Thanks for clarifying that. Similarly, was the increase in – like, was Games up ex-MAGIC?
Brian D. Goldner - President, Chief Executive Officer & Director
Games was flattish. It was up in the U.S., down a little bit internationally, but we have a number of games that grew within the quarter. In fact, a raft of games including Dungeons & Dragons, which is really on a tear, Risk, Scrabble, Trouble, Life, Candy Land, CLUE and OUIJA were all up in the quarter. And we're seeing great sell-through of our games. Our Games POS was up in the first quarter in the U.S., and up in many markets around the world. And so down a little bit internationally, but we view a lot of that as just timing on some of our new games initiatives.