Categories Analysis, Leisure & Entertainment

Hasbro (HAS) vs. Mattel (MAT): How did these toymakers fare during the fourth quarter?

Hasbro expects adjusted EPS to range between $4.45-4.55 in FY2023

Toy companies Hasbro Inc. (NASDAQ: HAS) and Mattel Inc. (NASDAQ: MAT) reported their fourth quarter 2022 earnings results recently. Both companies saw their performance lag expectations as they battled a challenging consumer environment during the important holiday quarter. Here’s a look at how they fared during this period:

Revenue

Hasbro reported revenues of $1.68 billion for the fourth quarter of 2022, which was down 17% from the same period a year ago. Revenue declined 14% on a constant currency basis. Mattel’s net sales in Q4 2022 fell 22% year-over-year to $1.40 billion. Sales dropped 19% in constant currency.

Earnings

On a GAAP basis, in Q4 2022, Hasbro reported a net loss of $128.9 million, or $0.93 per share, compared to a net income of $82.2 million, or $0.59 per share, last year. Adjusted EPS rose 8% to $1.31. Mattel saw its GAAP net income fall 93% YoY to $16.1 million, or $0.04 per share. Adjusted EPS dropped to $0.18 from $0.53 last year.

Category and brand performance

During the fourth quarter, Hasbro saw revenues decline across most of its major segments and its entire brand portfolio. The Consumer Products and Entertainment segments witnessed double-digit revenue declines while Wizards of the Coast and Digital Gaming saw revenue growth of 22%.

Revenues declined across its brand portfolio with Partner Brands and Emerging Brands both down 30%. Franchise Brands and TV/Film/Entertainment saw revenues drop 12% and 13% respectively while Hasbro Gaming fell 8%.

In FY2023, Hasbro expects revenue to decline mid-single digits in Consumer Products and low-single digits in Entertainment. Wizards of the Coast and Digital Gaming is expected to see mid-single digit revenue growth for the year.

Mattel reported sales declines across all its segments during the fourth quarter. Net sales in North America decreased 26% while International sales dropped 18%. Sales in the American Girl segment were down 17% in Q4. Gross billings were down for all categories barring Vehicles, which reported a 6% growth. The Dolls, Infant, Toddler and Preschool, and Action Figures, Building Sets, Games and Other categories all recorded double-digit declines in gross billings.

Outlook

For the full year of 2023, Hasbro projects revenue to be down low single digits against an expected flat to declining toy and game market. Adjusted EPS is expected to range between $4.45-4.55. Mattel expects its net sales in FY2023 to be comparable to sales of $5.4 billion reported in FY2022. Adjusted EPS is estimated to be $1.10-1.20 for the year.

Shares of Hasbro were up over 1% on Friday while Mattel’s stock was up over 3%.

Click here to read the full transcripts of Hasbro’s and Mattel’s Q4 2022 earnings conference calls

Looking for more insights on the earnings results? Click here to access the full transcripts of the latest earnings conference calls!

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