Hasbro, Inc. (HAS)

Sector: Consumer Discretionary|Industry: Leisure|Market Cap: $7.94B|Employees: 6K


Hasbro, Inc., together with its subsidiaries, operates as a toy and game company in the United States, Europe, Canada, Mexico, Latin America, Australia, China, and Hong Kong. The company operates through Consumer Products; Wizards of the Coast and Digital Gaming; Entertainment; and Corporate and Other segments. The Consumer Products segment engages in the sourcing, marketing, and sale of toy and game products. This segment also promotes its brands through the out-licensing of trademarks, characters, and other brand and intellectual property rights to third parties through the sale of branded consumer products, such as toys and apparel. Its toys and games include action figures, arts and crafts and creative play products, dolls, play sets, preschool toys, plush products, sports action blasters and accessories, vehicles and toy-related specialty products, games, and other consumer products; and licensed products, such as apparel, publishing products, home goods and electronics, and toy products. The Wizards of the Coast and Digital Gaming segment engages in the promotion of its brands through the development of trading cards, role-playing, and digital game experiences based on Hasbro and Wizards of the Coast games. The Entertainment segment engages in the development, production, and sale of entertainment content, including film, television, children’s programming, digital content, and live entertainment. The company sells its products to retailers, distributors, wholesalers, discount stores, specialty hobby stores, drug stores, mail order houses, catalog stores, department stores, and other traditional retailers, as well as e-commerce retailers; and directly to customers through its e-commerce websites under the MAGIC: THE GATHERING, Hasbro Gaming, PLAY-DOH, NERF, TRANSFORMERS, DUNGEONS & DRAGONS, PEPPA PIG, and other brand names. Hasbro, Inc. was founded in 1923 and is headquartered in Pawtucket, Rhode Island.

  1. Filings
  2. Company Profile

Business Summary

Hasbro, Inc. is a toy and game company focused on entertaining and connecting generations of fans through storytelling and play. The company's core business model revolves around creating and marketing a diverse portfolio of iconic brands across gaming, consumer products, and entertainment. Hasbro's primary revenue streams include the sale of toys and games, licensing of its intellectual property, and the production of entertainment content. The company holds a strong market position with a global presence, distributing products through various retail channels, ecommerce, and direct-to-consumer platforms. Hasbro competes with other toy and game companies, digital gaming developers, and content providers.

Key Statistics

  • Employees: 5,502 (as of December 31, 2023)
  • Geographic Footprint: Operates in over 35 countries
  • Headquarters: Pawtucket, Rhode Island
  • Founded: January 8, 1926
  • Number of locations/facilities: Multiple facilities globally, including manufacturing, distribution, and office locations.
  • Revenue: $5.00 billion (FY2023)
  • Market Capitalization: $8.93 billion (as of July 2, 2023)
  • Key Subsidiaries/Brands: MAGIC: THE GATHERING, Hasbro Gaming, PLAY-DOH, NERF, TRANSFORMERS, DUNGEONS & DRAGONS, PEPPA PIG, and premier partner brands

Leadership

  • CEO: Christian Cocks (Since 2022)
  • CFO: Gina Goetter (Since May 18, 2023)
  • President, Toys, Licensing & Entertainment: Tim Kilpin (Since April 24, 2023)
  • President and Chief Operating Officer of Wizards of the Coast and Digital Gaming: Cynthia Williams (Since 2022)
  • Chief People Officer: Najuma Atkinson (Since 2022)
  • Chief Revenue Officer: Matthew Austin (Since 2023)
  • Executive Vice President and Chief Legal Officer and Secretary: Tarrant Sibley (Since 2019)

The leadership team includes industry veterans with experience in finance, toy, and entertainment sectors.

Key Financial Metrics

  • Annual Revenue: $5.00 billion (FY2023)
  • Net Loss: $1.49 billion (FY2023)
  • Market Cap: $8.93 billion (as of July 2, 2023)
  • Total Assets: $6.54 billion (as of December 31, 2023)
  • Employees: 5,502 (as of December 31, 2023)
  • Key Financial Highlights: Revenue decreased by 15% year-over-year. Net loss was $1.49 billion, impacted by goodwill and asset impairment charges.

Products and Services

Hasbro offers a wide range of products and services across several categories:

  • Toys and Games: Includes action figures, arts and crafts, dolls, play sets, preschool toys, plush products, sports action blasters, vehicles, and games. Key brands include NERF, PLAY-DOH, and MONOPOLY.
  • Digital Gaming: Develops and licenses digital games, including AAA games, games as a service, and mobile games. Examples include Baldur's Gate 3 and Monopoly Go!.
  • Licensed Consumer Products: Out-licenses intellectual properties for various consumer products, including apparel, publishing, home goods, and electronics.
  • Entertainment: Develops and produces film, television, and digital content based on Hasbro brands, including animation and live-action productions.

Key Business Segments

Hasbro operates through four reportable segments:

  • Consumer Products: Sourcing, marketing, and sales of toys and games.
  • Wizards of the Coast and Digital Gaming: Promotion of brands through trading card, role-playing, and digital game experiences.
  • Entertainment: Development and production of Hasbro-branded entertainment content.
  • Corporate and Other: Management and administrative services.

In 2023, Consumer Products accounted for the largest portion of revenue, followed by Wizards of the Coast and Digital Gaming, and Entertainment. The company sold its non-core eOne Film and TV business in late 2023.

Business Strategy

Hasbro's strategy, referred to as Blueprint 2.0, focuses on creating story-led and play-led consumer franchises. Key strategic initiatives include:

  • Innovative Play: Developing innovative toys and games.
  • Expanding Brands: Focusing on a franchise-first approach through licensing, digital games, and entertainment.
  • Analytics and Insights: Developing data analytics capabilities.
  • Direct to Consumer: Investing in direct-to-consumer business through e-commerce and digital platforms.
  • Digital Gaming: Cultivating digital gaming through AAA games, games as a service, and licensing relationships.
  • Operational Excellence: Improving operational efficiency and reducing costs.

The company is also undergoing a multi-year transformation aimed at streamlining operations and enhancing shareholder value.

Industry Context

Hasbro operates in the highly competitive toy and game industry, as well as the entertainment industry. Key trends include the increasing importance of digital gaming, the shift to direct-to-consumer sales, and the evolving preferences of consumers. Major competitors include Mattel, digital gaming developers, and various content providers. Market share information is not explicitly provided in the 10-K filing.

Risk Factors

  • Strategic Risks: Failure to implement business strategy, changing consumer interests, and competition from other companies.
  • Operational Risks: Supply chain disruptions, reliance on third-party manufacturers, and inability to adapt to direct-to-consumer sales.
  • Financial Risks: Fluctuations in foreign currency rates, indebtedness, and potential impairment charges.
  • Global and Economic Risks: Pandemics, economic conditions, and inflation.
  • Regulatory Risks: Compliance with laws and regulations, product liability suits, and intellectual property protection.

Last Updated

2024-02-28

(Generated from latest 10-K filing)