A slowdown in the toy marketplace has led to a disappointing holiday quarter for Hasbro, echoing similar results recently announced by competitors Spin Master and Mattel. 

The LA-based toyco reported US$1.67 billion in net revenue for Q4, down by 17% compared to the same period last year. Hasbro’s consumer products segment underperformed during the holiday season, dropping 26% from last year to just over US$1 billion in revenue due to excess inventory at retail. Entertainment revenue also declined by 12% to US$335 million, caused by a decrease in film and unscripted TV deliveries. 

Hasbro’s Wizards of the Coast and digital gaming segment was the only division to post growth in Q4, with net revenue up 22% to US$339 million. This was driven by Wizards of the Coast’s iconic trading card game Magic: The Gathering, which experienced a 40% sales lift from strong orders of Dominaria: Remastered booster boxes and reorders of Warhammer 40,000 decks. 

The company has also reported its full-year total net revenue at US$5.86 billion, down 9% compared to 2021. This drop was felt in pretty much every segment, including franchise brands (down 4%), partner brands (down 9%), Hasbro gaming (down 13%), emerging brands (down 12%) and entertainment (down 17%).

In announcing its preliminary Q4 results, Hasbro discussed plans to eliminate 1,000 full-time positions and restructure its leadership framework to help reach its goal of US$250 million to US$300 million in annual cost savings by 2025.