Dive Brief:
- Toy and entertainment company Hasbro said Thursday that its anticipating slight revenue growth this year as it also works to mitigate the impact of tariffs imposed by President Donald Trump as part of his trade strategy.
- The company is moving to downsize its operations in China over the next two years, with the goal of reducing its U.S. toy and game volume originating from the country from 50% to 40%, CFO Gina Goetter said during a Thursday earnings call.
- Hasbro will “continue to diversify our manufacturing footprint to create optionality as we navigate the trade environment,” she said.
Dive Insight:
The company is also looking at potential pricing steps as part of its response to Trump’s tariffs, Goetter said, without elaborating.
A Hasbro spokesperson didn’t immediately respond to a request for comment.
Hasbro announced the tariff mitigation steps as it reported its earnings results for the fourth quarter. Its full year revenue declined 17% in 2024 compared with the prior year to reach about $4.1 billion.
The company said the decline was driven primarily by the divestiture of its Entertainment One film and TV business to Lionsgate for $375 million in December 2023. Excluding the impact of the divestiture, the full-year revenue decline was 7%, according to the toy maker.
The company has forecast an adjusted operating margin of 21% to 22% for 2025, compared with 20.3% last year.
The company’s projected revenue growth for 2025 takes into account the anticipated impact of U.S. tariffs on imports from China as well as potential levies on Mexico and Canada imports, Goetter told investors.
The finance chief said Hasbro has made “significant progress” over the last two years in its effort to turn around weak performance.
“We have developed a strategy that capitalizes on our unique strengths and market advantages and is focused on creating profitable growth that positions us to drive long-term value for all our stakeholders,” she said.
