Hasbro's Revenue Forecast Below Wall Street Estimates amid Subdued Demand
Hasbro Inc. (HAS) anticipates revenue in 2025 to fall short of Wall Street projections, as demand for its popular products like Star Wars action figures and Nerf guns remains sluggish. The forecast accounts for existing US tariffs on imports from China and possible levies on Mexico and Canada, but does not incorporate any further actions.
President Donald Trump's tariffs and threats of additional import duties have raised inflation concerns, dampening discretionary spending by households facing rising living expenses. Hasbro's rival, Mattel Inc. (MAT), has projected higher full-year earnings than Wall Street estimates, cautioning about potential price increases due to tariffs.
In response, Hasbro has unveiled a strategic plan targeting $1 billion in cost savings, average mid-single-digit revenue growth, and a 50-100 basis point improvement in annual operating profit margin through 2027.
The company anticipates total annual revenue to rise modestly compared to analyst estimates of a 4% increase, according to data from LSEG. Despite the broader economic challenges, Hasbro exceeded holiday quarter expectations due to improved sales in its consumer products segment, its primary revenue source.
Segment revenue declined by 1%, an improvement compared to the 10% drop in the third quarter. Hasbro's revenue for the three months ended December 29 reached $1.10 billion, surpassing analyst estimates of $1.03 billion. Adjusted earnings per share of 46 cents also topped expectations of 34 cents, driven by enhanced supply chain efficiency.
Shares of HAS gained 4% in pre-market trading.