Hasbro Faces Revenue Drop Amid Turnaround Efforts

Hasbro reported mixed results for the third quarter of 2024, with a 14.8% year-over-year revenue decline to $1.28 billion, missing Wall Street expectations, although earnings per share of $1.73 exceeded forecasts. The revenue drop was attributed to reduced consumer spending on toys and tough comparisons from the previous year's strong sales of Baldur's Gate 3. Despite the sales decline, Hasbro's cost-saving measures improved margins, with non-GAAP profit exceeding analyst estimates by 34.1%. The company continues to focus on its turnaround plan, which includes shedding less profitable segments and improving its digital and licensing initiatives. Hasbro's stock dipped following the earnings release, unlike rival Mattel, which reported a smaller revenue decline and exceeded profit expectations. Hasbro's CEO Chris Cocks expressed optimism about the company's progress, noting healthier inventory levels and improved cost structures, though challenges remain in the competitive toy industry.