Hasbro Reports 17.3% Revenue Decline, Operating Profit Recovery for Fiscal Year 2024

Hasbro, Inc. reported a significant decline in its financial performance for the fiscal year ending December 29, 2024, with consolidated net revenues of $4.14 billion, a decrease of 17.3% from $5.00 billion in the previous year. This decline was primarily attributed to an 88% drop in the Entertainment segment, following the sale of its eOne Film and TV business in late 2023, which accounted for a loss of $579 million in revenue. The Consumer Products segment also saw a 12% decrease, while the Wizards of the Coast and Digital Gaming segment experienced a modest 4% increase, driven by strong sales of digital games like Monopoly Go! and continued demand for Magic: The Gathering.

In terms of profitability, Hasbro reported an operating profit of $690 million, a substantial recovery from an operating loss of $1.54 billion in 2023. This turnaround was facilitated by a reduction in costs, including a 30.9% decrease in the cost of sales, which fell to $1.18 billion, and a significant reduction in program cost amortization from $448.9 million to $49.3 million. The company also recorded net earnings of $394.4 million, or $2.77 per share, compared to a net loss of $1.49 billion, or $(10.73) per share, in the prior year.

Strategically, Hasbro has focused on enhancing its core franchises and optimizing its operations. The company has made significant strides in its Operational Excellence program, achieving approximately $600 million in gross cost savings since its initiation in 2022. Additionally, Hasbro has strengthened its leadership team, appointing industry veterans to key positions, including John Hight as President of Wizards of the Coast and Digital Gaming, and Holly Barbacovi as Chief People Officer.

Operationally, Hasbro's workforce consisted of approximately 4,985 employees as of year-end 2024, with a notable focus on improving supply chain efficiency and reducing inventory levels. The company reported a 4% increase in customer engagement metrics within its digital gaming segment, reflecting a growing user base for its online platforms. However, the company remains cautious about market conditions, particularly regarding consumer spending and the competitive landscape, as it navigates the ongoing transformation of its business model.

Looking ahead, Hasbro anticipates continued challenges in the retail environment, particularly with the concentration of sales during the holiday season, which accounted for 58% of total revenues in 2024. The company is committed to leveraging its diversified portfolio of brands and franchises to drive future growth, while also adapting to evolving consumer preferences and technological advancements in the gaming and entertainment sectors.