In a surprising turn, Hasbro, the renowned Monopoly maker, faced a more significant decline than anticipated in its recent quarterly sales and profit, primarily attributed to a continued slump in toy industry demand affecting both digital and board games.
The past year witnessed sluggish demand due to reduced leisure spending and cautious inventory management by major retailers like Walmart and Target, impacting Hasbro’s overall sales. Looking ahead to 2024, the company projects a 3% to 5% decrease in revenue for its core Wizards of the Coast segment, driven by weakness in digital gaming.
This downturn echoes a broader trend, as Barbie maker Mattel also reported subdued holiday quarter figures and projected modest sales for the upcoming year.
Hasbro’s fourth-quarter net revenue plummeted approximately 23% to $1.29 billion, surpassing the analysts’ average expectation of a 19.3% drop to $1.36 billion. Furthermore, excluding certain items, Hasbro’s earnings per share fell to 38 cents, significantly below the estimated 66 cents.
The challenges faced by Hasbro signal a broader industry struggle, raising concerns about the future trajectory of the toy market and the impact of digital gaming trends on established players in the field.
