Hasbro Stock Falls as Sales Sink, and the Toy Maker Warns of More Declines Ahead
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Key Takeaways
Hasbro’s earnings sank on falling sales, and the toymaker warned of more softness ahead.
The toy maker’s Consumer Products and Entertainment segments saw big declines in demand.
Hasbro said it expects sales to drop further in 2024.
Hasbro (
HAS
) shares tumbled over 6% in early trading Tuesday as the toy giant reported its revenue plunged and warned of slowing demand amid difficult economic conditions.
The maker of G.I. Joe and Star Wars toys posted an unadjusted loss of $7.64 per share for the fourth quarter, compared to a loss of 93 cents a year ago. Adjusted
earnings per share (EPS)
came in at 38 cents, well short of forecasts. Revenue sank 23% from a year earlier to $1.29 billion.
Sales at the company’s Entertainment segment cratered 49%, and sales at its Consumer Products unit were down 25%. Hasbro noted sales in its Wizards of the Coast and Digital Gaming segment grew 7%.
CEO Chris Cocks said Hasbro faced a “challenging 2023,” and added that despite a difficult macroeconomic environment, the company is beginning 2024 “with a healthier balance sheet, a leaner cost structure, and a diverse portfolio of industry-leading toy and game brands that support our capacity to invest in the business and maintain our commitment to returning cash to shareholders via our category-leading dividend.”
Hasbro said it anticipates full-year revenue for its Consumer Products unit falling 7% to 12%, with
pro-forma
Entertainment segment sales down $15 million, and revenue for the Wizards of the Coast and Digital Gaming segment sliding 3% to 5%. The company added that it has boosted its planned cost cuts by the end of 2025 to $750 million per year from the previous target of $350 million to $400 million per year.
Shares of Hasbro were 6.9% lower at $47.71 per share as of about 11:50 a.m. ET Tuesday. They’ve lost more than 18% of their value over the past year.
