(Bloomberg) -- Hasbro Inc. is targeting mid-single-digit sales growth through 2027 and savings of about $1 billion, as the toymaker laid out a plan to expand its reach over the next few years.
The maker of G.I. Joe figurines and Dungeons & Dragons board games will allocate more investment to brands and categories with the highest potential to generate revenue and profit growth, such as Play-Doh, Magic: The Gathering, emerging markets and its self-published video games, the company said in a statement Thursday.
“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 Officer Chris Cocks said in the statement.
As demand for toys has slowed after a pandemic boom, Hasbro and rival Mattel Inc., the maker of Barbie dolls and Hot Wheels cars, have sought to eliminate costs and focus on profitability. Hasbro’s adjusted earnings-per-share in the fourth quarter were 46 cents, the company reported Thursday, which beat the average analyst estimate of 34 cents. Earlier in February, Mattel’s shares soared by the most in more than six months after earnings came in higher than expected.
In 2025, Hasbro forecast sales will be “up slightly” on a constant currency basis and adjusted earnings before tax, interest, depreciation and amortization of $1.1 billion to $1.15 billion.
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