Hasbro has today forecast annual profit below Wall Street estimates, slammed by a sharp decline in demand as more customers cut back spending on its toys and games amid rising prices.
Elevated freight and supply chain expenses have also crimped profits for the maker of Transformers toys and NERF blasters even though it took steps to cut costs through layoffs.
Toy demand has typically remained resistant to economic uncertainties, but it fell sharply in the holiday season, with Hasbro rival Mattel earlier this month projecting 2023 profit below expectations.
Hasbro said it expects 2023 adjusted earnings in the range of $4.45 to $4.55 per share, well below analysts' average estimate of $4.88 per share, according to Refinitiv data.
The company, known for brands including Peppa Pig and My Little Pony, also forecast its annual revenue to be down in the low-single digit percentage range, while analysts expected a 2.5% increase to $6 billion.
For the fourth quarter, the Monopoly board game maker posted revenue of $1.68 billion, in line with analysts' estimates, after it reported preliminary results late in January.
