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Hasbro (NASDAQ:HAS) presented on Tuesday at the Goldman Communacopia Conference.
CEO Chris Cocks said the toy giant sees more growth opportunity in the digital side of the company as the business of play extends to older ages than in the past. He also said partnerships are also significant and are a key part of Hasbro’s (HAS) strategy. In terms of digital play, Hasbro (HAS) thinks it has a ten-year lead over competitors. The PC console business is anticipated to be a larger focus than mobile games in general. Monopoly Go is seen as a long-term annuity for the company. Hasbro (HAS) also mentioned Exodus, which is described as the company’s epic new sci-fi action-adventure role-playing game.
Regarding the traditional toy business, Hasbro (HAS) expects year-over-year growth in 2025 as its transformation takes hold.
On the financial front, Hasbro (HAS) the Wizards business will see a drop in margins in the back half of the year due to the comparisons from a year ago. For the consumer product business, margins are expected to be higher due to the company’s better inventory position. Hasbro (HAS) thinks it is on the right path to see +20% margins in 2025.
Looking ahead, Hasbro (HAS) hopes to touch 1 in 5 consumers over the next few years. Emerging markets were also mentioned as a priority. Hasbro (HAS) said it is in a strong inventory position heading into the holiday season and that the early read on the back-to-school season is positive. There was no suggestion that the outlook is different from what was projected during Hasbro’s (HAS) Q2 earnings conference call. AI is being used on the development side of the business.
Shares of Hasbro (HAS) are up 32% on a year-to-date basis. The Seeking Alpha Quant Rating on Hasbro (HAS) is Strong Buy. The dividend yield for new buyers of the stock is 4.14%.
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