US toy and board game company Hasbro has reported a 14% year-over-year decline in revenue during the first quarter of 2023, according to a press release issued on April 27. The company cited a challenging macroeconomic environment and efforts to clear retail inventory as reasons for the dip, which was less than expected and positions the company to meet its full-year financial targets, said CEO Chris Cocks.
Hasbro’s Wizards of the Coast and Digital Gaming segment saw a 12% increase in revenue, while its Consumer Products and Entertainment segments both recorded drops. The company expects the toy and game market to be flat or declining for the rest of the year, and it forecasts a low-single-digit decline in full-year 2023 revenue.
Hasbro Sees Decline in Revenues
Hasbro reported a 14% year-over-year decline in revenue during the first quarter of 2023. According to a press release issued on April 27, the dip in revenue was due to the challenging macroeconomic environment and the company’s efforts to clear retail inventory. However, the decline was less than expected, positioning the company to meet its full-year financial targets, said CEO Chris Cocks.
As we reported on Zatrun.com, Hasbro’s Consumer Products segment recorded a 23% drop as it turned to promotional activity to clear retail inventory, while the Entertainment segment fell 19% due to the timing of the release of new films and other content. In contrast, Hasbro’s Wizards of the Coast and Digital Gaming segment saw a 12% increase in revenue, led by Magic: The Gathering (up 16%) and Dungeons and Dragons (up 13%).
The company expects the toy and game market to be flat or declining for the rest of the year, and it forecasts a low-single-digit decline in full-year 2023 revenue. However, it continues to implement its Blueprint 2.0 plan, which aims to focus on “fewer, bigger brands” with an eye toward those with high growth and high profit.
The Company Continues to Invest in Growth Priorities
Mattel, Hasbro’s rival toymaker, reported a 22% decline in net sales during the first quarter, citing similar reasons for the decline. In contrast, Lego reported a 17% jump in revenue in 2022 thanks to offerings designed to appeal to builders of all ages, passions, and interests.
Hasbro’s CEO, Cocks, said in the press release that Wizards of the Coast and Digital Gaming delivered strong fan engagement, and the company continues to invest in growth priorities, reduce costs, and return cash to shareholders. CFO Deborah Thomas also said that the company is working through its inventory and is positioned to drive continued margin expansion.
