By Dean Seal

Hasbro is guiding for revenue to tick up slightly in 2025 as it navigates a looming trade war and adopts a new strategy to spur sales.

The toymaker said revenue this year should come in slightly higher than last year on a constant currency basis. The outlook accounts for expected U.S. tariffs on Chinese imports and potential duties on imports from Mexico and Canada.

Hasbro warned in November that Donald Trump's proposed tariffs would force it to raise prices on some of its best-selling toys. The Pawtucket, R.I., company said it was working with suppliers and considering design changes to prepare for the potential levies.

The 2025 guidance reflects some mitigation measures, including potential price changes and supply-chain shifts, to the current slate of tariffs but doesn't contemplate any additional ones, Hasbro said.

The company simultaneously released a new strategic plan that calls for revenue to rise in the mid-single-digit percentage range on average each year through 2027.

In that span, Hasbro aims to expand its reach by 50% to more than 750 million customers as it leans into its well-known brands, including Monopoly and Dungeons & Dragons, as well as high-growth profit generators such as digital games.

"Our new strategy is grounded in the key insights which will drive Hasbro's evolution into a modern play company: serving fans of all ages around the world at every price point, and meeting fans where they are playing, which is increasingly online," Chief Executive Chris Cocks said.

The plan is structured to generate $1 billion in cost savings over the next few years, with about half of that falling directly to the bottom line, Hasbro said.

The outlook accompanied Hasbro's report for the fourth quarter, in which it posted a loss of $34.3 million, or 25 cents a share. That's narrowed from a loss of $1.06 billion, or $7.64 a share, in the same quarter a year earlier, which included a large goodwill and asset-impairment charge partially stemming from the sale of its eOne film and television business.

Stripping out one-time items, adjusted earnings were 46 cents a share. Analysts surveyed by FactSet had been expecting 34 cents a share.

Revenue dropped 15% to $1.1 billion, above analyst estimates for $1.03 billion, according to FactSet.

Shedding the eOne business accounted for much of the shortfall. Without it, revenue was down just 3%, including some falloff from its Wizards of the Coast and digital gaming business as it lapped the release of a popular The Lord of the Rings holiday set in the year-earlier quarter.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

February 20, 2025 07:20 ET (12:20 GMT)

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