On Tuesday, toy manufacturer Hasbro announced results for the fourth quarter that fell well short of expectations, and expressed caution regarding its 2024 financial year.

The American group saw its sales fall by 23% over the last three months of the year, leading to an operating loss of nearly 1.2 billion dollars, taking into account asset write-downs and inventory provisions.

At 0.38 dollars per share, adjusted net earnings per share (EPS) were well below the consensus figure of 0.66 dollars.

For 2024, Hasbro says it expects a 7% to 12% drop in sales of its core consumer toy business.

However, the company says it is starting 2024 with a healthier balance sheet and a leaner cost structure, which should enable it to improve its financial performance in 2024.

Hasbro now says it is targeting savings of $750 million a year by the end of 2025, compared with $350-400 million up to now.

In pre-market trading, the stock was down more than 10% on Tuesday morning following this publication.

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