Hasbro reports a 20% decline in revenue and provides a pessimistic 2024 outlook.

• Hasbro reported a more than 20% decline in its fourth-quarter revenue and forecasted a downbeat 2024 outlook on Tuesday morning.
• In the last three months of 2023, Hasbro suffered a loss of $1.06 billion, or $7.64 per share, which was significantly wider than the previous year's losses.
• By the end of 2025, the company anticipates reducing expenses by $750 million.

The toy company reported a more than 20% decline in its fourth-quarter revenue and forecasted a downbeat 2024 outlook on Tuesday.

How did Hasbro perform in the fourth quarter compared to LSEG's (formerly Refinitiv) estimates?

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

In the last three months of 2023, Hasbro suffered a significant loss of $1.06 billion, or $7.64 per share, which was much wider than the losses of $128.9 million, or 93 cents, recorded in the previous year. Despite making significant adjustments to goodwill and intangible assets, the company reported adjusted earnings per share of only 38 cents, which was still below analysts' expectations.

In 2023, Hasbro's revenue declined 15% to $1.29 billion, with double-digit sales drops in its consumer products and entertainment segments. However, the company saw an increase in revenue in its Wizards of the Coast and digital gaming segment, mainly due to licensing revenue from Baldur's Gate 3 and Monopoly Go.

Inventory reduction by more than 50% compared to the previous year was achieved by the company.

Despite facing some challenges, 2023 was a productive year for Hasbro, as stated by Chief Financial Officer Gina Goetter. To optimize inventory, reset costs, and sharpen focus on play, the company took aggressive steps. These included the eOne film and TV divestiture.

Hasbro anticipates a revenue decline of 3% to 5% in the Wizards of the Coast segment and a 7% to 12% drop in the consumer products business. The company expects its overall adjusted earnings before interest, taxes, depreciation and amortization to be between $925 million and $1 billion in the upcoming year.

The company has increased its cost-cutting target from $400 million to $750 million by the end of 2025.

In December, the toymaker let go of 1,100 employees following a 15% reduction in its workforce earlier in the year.