Toymaker Hasbro’s turnaround efforts help quarterly sales, profit
2024.07.25 07:21
(Reuters) – Hasbro (NASDAQ:) posted a smaller-than-expected drop in second-quarter sales on Thursday as steady digital gaming demand offset a slump in toy sales, while cost-control strategies helped the toymaker beat profit expectations.
Shares of the company were up 6% in premarket trading as Hasbro saw margins grow in the quarter to 21.3% compared with a 15.6% decline in margin a year earlier.
The Nerf toy gun maker’s turnaround strategy to limit expenses and maintain a tight inventory amid an industrywide slowdown in toy demand has helped boost its performance.
The company’s quarterly revenue dropped 18% to $995.3 million, smaller than a 22.02% drop estimated by analysts, according to LSEG data.
On an adjusted basis, Hasbro earned $1.22 per share in the second quarter, compared with estimates of 78 cents.
Hasbro now expects full-year revenue from its consumer products segment to be down 7% to 11%, compared with its February forecast of a 7% to 12% decline.
On Tuesday, Barbie maker Mattel (NASDAQ:) topped Wall Street estimates for second-quarter profit, aided by a tight control on costs even as it posted a surprise drop in sales.
