Categories Analysis, Leisure & Entertainment

Hasbro vs. Mattel: Here’s how these toymakers fared in Q4 2023

Mattel expects adjusted EPS to be $1.35-1.45 in FY2024

Leading toymakers Hasbro, Inc. (NASDAQ: HAS) and Mattel, Inc. (NASDAQ: MAT) reported their fourth quarter 2023 earnings results this month. Both companies performed differently, with Hasbro coming out of a challenging year with disappointing results while Mattel benefited from the success of its Barbie movie. Here’s a look at how these two firms fared in the final quarter of fiscal year 2023:

Revenue and profits

In Q4 2023, Hasbro’s revenues declined 23% year-over-year to $1.3 billion. The company reported a GAAP net loss of $1.06 billion, or $7.64 per share, compared to a loss of $129 million, or $0.93 per share, last year. Adjusted EPS fell 71% to $0.38.

Mattel witnessed a 16% growth in net sales to $1.62 billion in the fourth quarter. Revenues grew 14% in constant currency. Net income jumped to $147 million, or $0.42 per share, from $16 million, or $0.04 per share, last year. Adjusted EPS grew 61% to $0.29.

Franchise and category performance

In the fourth quarter, Hasbro saw revenues decline across most of its segments and its brand portfolio. The Wizards of the Coast and Digital Gaming segment reported a 7% growth in revenue, which was more than offset by a 25% decline in the Consumer Products segment and a 49% drop in the Entertainment segment.

The Consumer Products segment witnessed double-digit revenue declines in all its major geographic regions. By brand portfolio, revenues fell 9% in Portfolio Brands while Franchise Brands, Partner Brands, and non-Hasbro branded film & TV recorded double-digit decreases. Revenues from Hasbro total gaming was down 2% in the quarter.

In Q4 2023, Mattel recorded sales increases across most of its segments. The North America segment saw sales gain by 32% and the International segment saw sales growth of 3%. Net sales in the American Girl segment decreased 6% in the quarter.

By category, Mattel saw a 29% increase in gross billings for Dolls, driven by growth in Barbie, Disney Princess and Disney Frozen, and Monster High. Barbie saw strong growth, driven by toys and benefits related to the movie.

Gross billings rose 9% in the Infant, Toddler, and Preschool category, driven by growth in Fisher-Price, and 18% in the Vehicles category, driven by growth in Hot Wheels. Gross billings for Action Figures, Building Sets, Games, and Other were up 3%, helped by growth in games, partly offset by declines in action figures.

Outlook

For the full year of 2024, Hasbro expects revenues to decline 7-12% in its Consumer Products segment and 3-5% in its Wizards of the Coast segment. Adjusted EBITDA is expected to range between $925 million to $1 billion.

Mattel expects net sales in FY2024 to remain comparable on a constant currency basis to FY2023 sales of $5.4 billion. Adjusted EPS is expected to be $1.35-1.45. Adjusted gross margin is expected to range between 48.5-49.0%. Adjusted EBITDA is estimated to range between $975 million to 1.02 billion.

Hasbro’s stock stayed in red while Mattel’s shares gained over 1% on Friday.

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