Main toymakers Hasbro, Inc. (NASDAQ: HAS) and Mattel, Inc. (NASDAQ: MAT) reported their fourth quarter 2023 earnings outcomes this month. Each firms carried out otherwise, with Hasbro popping out of a difficult yr with disappointing outcomes whereas Mattel benefited from the success of its Barbie film. Right here’s a have a look at how these two companies fared within the closing quarter of fiscal yr 2023:
Income and earnings
In This autumn 2023, Hasbro’s revenues declined 23% year-over-year to $1.3 billion. The corporate reported a GAAP internet lack of $1.06 billion, or $7.64 per share, in comparison with a lack of $129 million, or $0.93 per share, final yr. Adjusted EPS fell 71% to $0.38.
Mattel witnessed a 16% progress in internet gross sales to $1.62 billion within the fourth quarter. Revenues grew 14% in fixed foreign money. Web earnings jumped to $147 million, or $0.42 per share, from $16 million, or $0.04 per share, final yr. Adjusted EPS grew 61% to $0.29.
Franchise and class efficiency
Within the fourth quarter, Hasbro noticed revenues decline throughout most of its segments and its model portfolio. The Wizards of the Coast and Digital Gaming section reported a 7% progress in income, which was greater than offset by a 25% decline within the Shopper Merchandise section and a 49% drop within the Leisure section.
The Shopper Merchandise section witnessed double-digit income declines in all its main geographic areas. By model portfolio, revenues fell 9% in Portfolio Manufacturers whereas Franchise Manufacturers, Accomplice Manufacturers, and non-Hasbro branded movie & TV recorded double-digit decreases. Revenues from Hasbro whole gaming was down 2% within the quarter.
In This autumn 2023, Mattel recorded gross sales will increase throughout most of its segments. The North America section noticed gross sales acquire by 32% and the Worldwide section noticed gross sales progress of three%. Web gross sales within the American Woman section decreased 6% within the quarter.
By class, Mattel noticed a 29% enhance in gross billings for Dolls, pushed by progress in Barbie, Disney Princess and Disney Frozen, and Monster Excessive. Barbie noticed robust progress, pushed by toys and advantages associated to the film.
Gross billings rose 9% within the Toddler, Toddler, and Preschool class, pushed by progress in Fisher-Worth, and 18% within the Autos class, pushed by progress in Scorching Wheels. Gross billings for Motion Figures, Constructing Units, Video games, and Different have been up 3%, helped by progress in video games, partly offset by declines in motion figures.
Outlook
For the total yr of 2024, Hasbro expects revenues to say no 7-12% in its Shopper Merchandise section and 3-5% in its Wizards of the Coast section. Adjusted EBITDA is predicted to vary between $925 million to $1 billion.
Mattel expects internet gross sales in FY2024 to stay comparable on a continuing foreign money foundation to FY2023 gross sales of $5.4 billion. Adjusted EPS is predicted to be $1.35-1.45. Adjusted gross margin is predicted to vary between 48.5-49.0%. Adjusted EBITDA is estimated to vary between $975 million to 1.02 billion.
Hasbro’s inventory stayed in pink whereas Mattel’s shares gained over 1% on Friday.