Hasbro’s Net Revenue Projected to Stay Below 2021 Peak Amid Ongoing Market Challenges

Hasbro (NASDAQ: HAS) is expected to face another challenging year in 2024 as it contends with a smaller entertainment segment and weak demand for its consumer products. Over the past two years, the company’s revenue has significantly declined due to decreased demand amid reduced consumer discretionary spending and cautious inventory management by major retailers. According to Visible Alpha consensus, Hasbro’s net revenue is projected to decline by -17% year-over-year in 2024, dropping to $4.2 billion. While the company has been working on a turnaround strategy, analysts expect net revenue to remain well below the peak of $6.4 billion seen in 2021.

Hasbro generates revenue from three key segments: Consumer Products, Wizards and Digital Gaming, and Entertainment. Analysts estimate Consumer Product revenue to decline by -8.7% in 2024, driven by a continued shift in consumer preferences away from traditional toys. The Entertainment segment faces even greater difficulties, with an anticipated -88% revenue drop in 2024, mainly attributed to Hasbro’s strategic exit from certain ventures, including the sale of its Entertainment One (eOne) unit, a significant contributor to this segment.

In contrast, the Wizards and Digital Gaming division has been a bright spot for the company. Although growth in this segment eased in 2022 and 2023, the segment is expected to account for 35% of Hasbro’s total revenue in 2024, up from 17% in 2020. Wizards and Digital Gaming revenue increased by +10% year-over-year in 2023, and despite a slight -1% decline forecasted for 2024, it remains a key contributor to Hasbro’s overall performance, driven by strong consumer engagement and the digital expansion of popular franchises like Magic: The Gathering and Dungeons & Dragons.