Hasbro’s turnaround efforts—such as restructuring its core business and exiting unprofitable categories—are starting to bear fruit in its Q3 results. 

While third-quarter global revenue for the toy giant decreased to US$1.28 billion—a 15% drop compared to this time last year—Hasbro reported net earnings of US$223.2 million (up from a US$171.1-million loss in Q3 2023). 

Heading into the holiday shopping season, the company will continue to streamline its product segments and finish the year with improved profitability and cash flow, said CFO Gina Goetter. 

All of Hasbro’s verticals posted declines in revenue during the sales period that ended with September, including its tentpole Wizards of the Coast and Digital Gaming segment. Despite Monopoly GO! contributing US$30 million and Magic: The Gathering booster pack sales growing 3%, this wasn’t enough to offset the segment’s 5% drop in revenue to US$404 million. 

Hasbro attributes this hit to a lack of AAA budget video games to fill the void left by the launch of Baldur’s Gate 3 in Q3 last year. 

Consumer products experienced a 10% revenue loss, generating a total of US$860 million the the last three months as the toyco continued to dump unprofitable brands and hold closeout sales to offload its unsold inventory. Meanwhile, franchise brands Transformers, Furby and My Little Pony all experienced sales spikes at retail, helping to offset the loss. 

Hasbro’s entertainment division took the biggest hit in the third quarter, with revenue plummeting 87% when last year’s sale of its eOne film and TV business to Lionsgate was included. Removing eOne’s impact from the equation, Hasbro reported a small 1% increase in entertainment sales, thanks to its Transformers One feature film and other broadcast deals.