Hasbro, the maker of Nerf toy guns, reported a smaller-than-expected drop in second-quarter sales and beat profit expectations. The toymaker’s turnaround strategy, focusing on cost control and inventory management, helped drive its success.
The company’s margins grew to 21.3% in the quarter, a significant improvement from the previous year. Hasbro’s digital gaming segment also performed well, with revenue jumping 20% thanks to the success of new releases like “MAGIC’S Modern Horizons 3” and “Monopoly Go!”.
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The company’s decision to sell off its entertainment asset eOne last year allowed it to concentrate on its core businesses: toys, licensed and digital games, and international publishing deals.
Hasbro revised its full-year revenue forecast for its consumer products segment, expecting a 7% to 11% decline instead of the previously predicted 7% to 12%. Following the announcement, Hasbro’s shares surged 10% before the bell.