Shares in Hasbro Inc (NASDAQ:HAS) tumbled 11.8% before the bell as its key holiday season results failed to match dampened expectations.
The maker of Monopoly, Scrabble, and a slew of character toys such as Transformers and Power Rangers cited reduced leisure spend and cautious inventory management by major retailers, including Walmart and Target, for its woes.
Its fourth-quarter net revenue dropped about 23% to $1.29 billion, widely missing consensus forecasts.
Despite these challenges, Hasbro projects an improved adjusted EBITDA, benefiting from cost-saving measures, including workforce reductions.
Providing guidance, the toy giant said it anticipates a 7% to 12% sales decline in its consumer products segment for the fiscal year 2024, with its Wizards of the Coast segment expected to see a 3% to 5% decrease.
At 7.54 EST, the stock was down $6.04 at $45.25.