Hasbro's sales drop 15% amid ongoing turnaround challenges
- Hasbro's revenue decreased by 15% in Q3 2024, with earnings at $1.59 per share.
- While sales of Star Wars toys were disappointing, brands like Magic: The Gathering showed positive growth.
- The company's ongoing turnaround plan is expected to lead to improved profits and operational efficiencies in 2025.
In the third quarter of 2024, Hasbro reported a significant revenue decline of 15%, with earnings at $1.59 per share, compared to a loss last year. Excluding the impact of their divestiture of eOne, revenue decline was reported at 9%. As the toy maker intends to streamline its operations, it is focusing on shifting towards more profitable sectors, including games and digital licensing. CEO Chris Cocks expressed optimism about the turnaround plan, highlighting improvements in profit margins and inventory management. However, some areas like Star Wars merchandise sales lagged expectations, noting challenges faced in the market. Despite these challenges, there were boosts in other lines like Magic: The Gathering and Play-Doh, indicating potential for recovery. Analysts suggest that while 2024 may still pose challenges, a more favorable outlook for the company may emerge in 2025, with an industry undergoing significant changes in consumer engagement and play concepts.