Hasbro Reports Solid Q4, Projects Modest Sales Growth for 2025
American toy manufacturer Hasbro Inc. (HAS) announced on Thursday a better-than-expected fourth quarter revenue, surpassing analysts’ estimates, and forecast a modest increase in sales for 2025.
Q4 Performance
From October to December, the Pawtucket, Rhode Island-based company generated $1.1 billion in revenue, a 15% decline year-over-year, according to a press release. This outpaced the consensus estimate of analysts surveyed by Bloomberg. The revenue drop was primarily attributed to the divestiture of Hasbro’s eOne audio-visual content acquisition and production subsidiary.
For the full fiscal year, the group reported revenue of $4.1 billion, representing a 17% decline year-over-year, but also slightly above expectations.
"We made progress in games and licensing, strengthened our operating efficiency, and significantly improved the performance of our toys business," said Chris Cocks, Hasbro’s CEO.
Breaking down the Q4 results, the "consumer products" segment, which includes physical toys and games, experienced a modest 1% decline. While revenue climbed 2% in Hasbro’s largest market, North America, it dropped by 10% in Europe and 30% in Latin America.
The segment comprising role-playing games and video games saw its revenue decrease by 7%, weighed down by a decline in tabletop games. Finally, Hasbro’s entertainment division’s revenue continued to plummet by 91%, largely due to the sale of eOne.
In the fourth quarter, the company reported a net loss of $34.3 million, compared to a massive loss of $1 billion in the same quarter a year ago. The loss was partly impacted by charges related to its ongoing transformation efforts. However, on a per-share basis and excluding exceptional items, earnings came in at $0.46, exceeding analysts’ expectations.
2025 Outlook
For 2025, Hasbro anticipates a "modest increase" in revenue at constant currency rates. The group noted that this forecast incorporates the impact of U.S. tariffs on imports from China, particularly as announced on February 1, 2025, and reflects the mitigating actions Hasbro intends to take, including sourcing adjustments.
Transformation Plan
Hasbro also unveiled a new multi-year transformation plan. The company aims to achieve mid-single-digit average revenue growth and a 0.5 to 1 percentage point improvement in operating margin by 2027.
Key initiatives of the plan include:
- Expanding into new toy and game categories
- Investing in digital gaming and mobile entertainment
- Enhancing its digital commerce capabilities
- Optimizing its supply chain and manufacturing footprint
The transformation plan is expected to drive long-term growth and profitability for Hasbro, enabling it to navigate the evolving toy and entertainment landscape effectively.
