The challenging first quarter hit Hasbro with a 14% revenue decline to $1 billion.
Despite the slip, the company doubled down on its guidance for the year and believes that a stronger back half looms on the horizon. In Q1, Hasbro’s direct-to-consumer business, Hasbro Pulse, spiked 21% while consumer products licensing and total gaming each grew by 2%, respectively.
“First quarter results came in ahead of our expectations and position Hasbro to meet our full-year financial targets, Wizards of the Coast and Digital Gaming delivered strong fan engagement,” says Hasbro CEO Chris Cocks. “Segment revenues increased 12%, including a 16% revenue increase in Magic: The Gathering, behind the successful release of Phyrexia: All Will Be One. Dungeons and Dragons: Honor Among Thieves delivered strong critical and audience reviews pointing to a promising long life including home entertainment and streaming, while also introducing our newest Franchise Brand to tens of millions of new fans around the world and positioning Dungeons & Dragons for robust full-year growth.”
Looking ahead, Hasbro continues focusing on its Blueprint 2.0 strategy, first revealed last October. That plan places a focus on fewer, bigger brands, including Transformers, NERF, Magic: The Gathering, Dungeons & Dragons, Peppa Pig, Play-Doh, and the Hasbro Gaming portfolio.
The company also says it wants to gain market share in the following categories: Action Figures & Accessories; Arts & Crafts; Games; Outdoor & Sports; and Preschool Toys
“We’ve made significant progress in implementing our Blueprint 2.0 strategy, including heightening our focus on high-growth, high-profit categories; improving our cost structure; and adding talented executives to our leadership team,” Cocks says. “The sale process for the eOne TV and film assets is ongoing and we expect to provide an update during the second quarter. The global Hasbro team continues to execute our strategy to unlock the value of our rich IP library across our growth priorities including in gaming, direct-to-consumer, and licensing.”
Revenue in Hasbro’s consumer products segment declined 21% in Q1 as the company worked on reducing inventory levels leftover from 2022.
Earlier this month, Hasbro revealed that it’s hired industry exec Tim Kilpin to lead Toy, Licensing, & Entertainment as President while Harley-Davidson vet Gina Goetter will join the company as Chief Financial Officer beginning May 18.
This week, Hasbro inked a historic partnership agreement with Mattel to create co-branded toys and games, and this summer’s Transformers: Rise of the Beasts should drive families into toy departments. The company notes that Transformers, G.I. Joe, Dungeons & Dragons, and Magic: The Gathering grew in the first quarter, but that growth was stifled by declines elsewhere in its portfolio.
Additional details will be revealed when the company hosts a call with analysts later this morning.
