Hasbro, the renowned toy company based in Pawtucket, R.I., has reported a significant decrease in sales for the fourth quarter. Furthermore, the company has forecasted another year of declining consumer product sales.
In the quarter ending on December 31, Hasbro recorded a loss of $1.06 billion, equivalent to $7.64 per share. This marks a significant contrast compared to the loss of $128.9 million, or 93 cents per share, reported in the same period the previous year. Analysts surveyed by FactSet had anticipated a per-share profit of 59 cents, hence falling short of expectations.
Adjusting for certain one-time items, the adjusted per-share earnings amounted to 38 cents, which was lower than the forecasted 65 cents by analysts, according to FactSet.
Hasbro’s revenue also experienced a decline of 23%, settling at $1.29 billion. This missed the projected $1.34 billion estimated by analysts surveyed by FactSet.
The increase of 7% in revenue from the Wizards of the Coast and Digital Gaming segment was overshadowed by a 25% decrease in consumer products revenue and a significant 49% drop in revenue from the entertainment segment.
The company’s profitability for the quarter was influenced by a substantial impairment charge related to goodwill and assets. A portion of this charge was associated with the divestment of its eOne film and television business. In December, Hasbro successfully completed the sale of eOne to Lions Gate Entertainment.
Looking ahead to the future, Hasbro anticipates a decline of 7% to 12% in consumer products revenue for the year 2024. Moreover, revenue from the Wizards of the Coast segment is projected to decrease by 3% to 5%, largely driven by comparisons in licensed digital gaming during the second half of the year.