Hasbro Financials — 20% Hit to Q4 Revenue, Lost $1.06B and Expects Further Revenue Slide

Hasbro Financials — 20% Hit to Q4 Revenue, Lost $1.06B and Expects Further Revenue Slide

RI-based global toy company Hasbro reported a decline of 20% to its fourth-quarter revenue and issued a downbeat 2024 forecast on Tuesday.

GoLocal previously reported there have been massive layoffs.

More pain is coming.

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The company now expects to cut $750 million in costs by the end of 2025, up from a previous target of $350 million to $400 million.

In December, the toymaker laid off 1,100 employees after it had already cut 15% of its workforce earlier in the year.

The company also announced that it is abandoning its Providence campus by January 2025.

According to CNBC, Hasbro performed in the fourth quarter compared to estimates:

        Earnings per share: 38 cents vs. 66 cents expected
        Revenue: $1.29 billion vs. $1.36 billion expected

 

For the last three months of 2023, Hasbro lost $1.06 billion, or $7.64 per share, drastically wider than losses of $128.9 million, or 93 cents, a year earlier.

“Guided by our strategy of “Fewer, Bigger, Better,” we had important wins across both toys and games while making progress in our transformation during a challenging 2023. Despite the macroeconomic backdrop, we are entering 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,” said Chris Cocks, Hasbro chief executive officer. “Our refreshed leadership team is bringing innovative new products to our fans. At the same time, we are taking the necessary actions to transform Hasbro and deliver long-term profitable growth starting with driving significant profit growth across our segments in 2024 and building momentum in our innovation pipeline between now and 2025.”

"2023 was a productive year for Hasbro, although not without some challenges." said Gina Goetter, Hasbro chief financial officer. “As we navigated the current environment, we took aggressive steps to optimize our inventory, reset the cost structure, and sharpen our portfolio focus on play with the eOne film and TV divestiture. Taken together, the actions throughout the full year have positioned the company for improved financial performance in 2024 and beyond. We are encouraged by our recent progress and remain laser focused on execution to deliver on our transformation objectives.”