Toy Giant Sees Growth in Digital and Kidult Market

  • Hasbro’s revenue fell 18% year over year to $995 million
  • Excluding the sale of its eOne film and TV unit, sales declined 6%
  • Operating profit improved to $212 million from a loss of nearly $189 million last year
  • Net earnings were $138.5 million compared to a $235 million net loss a year ago
  • Hasbro achieved $40 million of net cost savings for the quarter and approximately $90 million year-to-date
  • CEO Chris Cocks said digital is a key growth factor in the industry
  • 60% of Hasbro’s revenue comes from consumers 13 years old and up
  • Hasbro raised its full-year guidance for consumer products segment decline to 7% to 11%
  • Wizards of the Coast segment revenue expected to decline 1% to 3%
  • Hasbro made several recent leadership changes

Hasbro reported a decline in second-quarter revenue of 18% year over year but achieved improved operating profit. Excluding the sale of its eOne film and TV unit, sales fell 6%. The company is considering a takeover of rival Mattel while focusing on digital growth and innovation for older consumers, known as ‘kidults’. Hasbro raised its full-year guidance for consumer products segment decline to 7% to 11%, with Wizards of the Coast segment revenue expected to decline 1% to 3%. CEO Chris Cocks highlighted the importance of digital in the industry and announced recent leadership changes.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Hasbro’s financial performance, including revenue, profit, and cost savings. It also discusses the company’s growth strategy and recent leadership changes. The article does not include any irrelevant or sensational details, nor does it present personal opinions as facts. However, it could provide more context on the speculation regarding potential bids for Mattel.
Noise Level: 6
Noise Justification: The article provides relevant financial information about Hasbro’s performance and its plans for growth. However, it includes some irrelevant details about Mattel and speculation regarding potential takeovers that do not directly impact Hasbro’s operations or financial performance.
Financial Relevance: Yes
Financial Markets Impacted: Hasbro and Mattel stocks
Financial Rating Justification: The article discusses Hasbro’s financial performance, including revenue, operating profit, net earnings, cost savings, and guidance updates. It also mentions speculation about a potential takeover of Mattel by Hasbro, which would impact both companies’ stocks.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article. It discusses financial performance and changes within Hasbro, but no major crisis or disaster occurs.

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