Toymaker Hasbro echoes rival Mattel in predicting tepid sales 

Hasbro makes Monopoly and other games.

Hasbro said it expects a bigger hit to revenue in the first half of 2024 after reporting a steeper-than-expected drop in Christmas holiday quarter results, as the Monopoly maker grapples with persistently weak demand for toys.

"We are forecasting revenue trends will improve as we move through the year with steeper declines in Q1 and Q2," chief financial officer Gina Goetter said. Hasbro executives warned that "a lot of older discounted inventory still remains" in its growth channels and value resellers, which will need a quarter or two to work through. 

The results echo pressures seen across toy manufacturers, including rival Mattel, which forecast tepid sales in 2024 after a softer Christmas holiday period.

For the 2024 financial year, Hasbro's Consumer Products unit, which made up more than half of its 2023 sales, is expected to decline. "The Consumer Products segment remains Hasbro's biggest challenge," said James Zahn, editor-in-chief of The Toy Book magazine.

Revenue in its Wizards of the Coast segment, which includes games such as "Baldur’s Gate III" and "Monopoly Go!", is forecast to decrease by 3% to 5% owing to weakness in digital gaming.

The company recorded a net revenue decline of 23%, to $1.29bn (€1.2bn) in the three months to the end of December. 

Reuters