| Metric (USD Millions) | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|-----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| North America         | **533.0**  **[0000046080-23-000011_exhibit991q42022.htm:9]**  | **279.1**  **[0000046080-23-000042_has-20230402.htm:30]**  | **382.0**  **[0000046080-23-000083_has-20230702.htm:29]**  | **573.6**  **[0000046080-23-000095_has-20231001.htm:33]** **[0000046080-23-000095_has-20231001.htm:45]** **[0000046080-23-000093_exhibit991q32023.htm:11]**  | **414.4**  **[0000046080-24-000008_exhibit991q42023.htm:7]**  | **239.1**  **[0000046080-24-000085_has-20240331.htm:12]** **[0000046080-24-000085_has-20240331.htm:32]**  | **306.1**  **[0000046080-24-000137_has-20240630.htm:13]**  | **526.8**  **[0000046080-24-000167_has-20240929.htm:14]**  |
| Europe                | **289.1**  **[0000046080-23-000011_exhibit991q42022.htm:9]**  | **131.6**  **[0000046080-23-000042_has-20230402.htm:30]**  | **131.9**  **[0000046080-23-000083_has-20230702.htm:29]**  | **208.7**  **[0000046080-23-000095_has-20231001.htm:33]** **[0000046080-23-000095_has-20231001.htm:45]** **[0000046080-23-000093_exhibit991q32023.htm:11]**  | **197.3**  **[0000046080-24-000008_exhibit991q42023.htm:7]**  | **87.5**  **[0000046080-24-000085_has-20240331.htm:12]** **[0000046080-24-000085_has-20240331.htm:32]**  | **92.0**  **[0000046080-24-000137_has-20240630.htm:13]**  | **162.3**  **[0000046080-24-000167_has-20240929.htm:14]**  |
| Asia Pacific          | **91.8**  **[0000046080-23-000011_exhibit991q42022.htm:9]**   | **63.3**  **[0000046080-23-000042_has-20230402.htm:30]**   | **66.4**  **[0000046080-23-000083_has-20230702.htm:29]**   | **61.8**  **[0000046080-23-000095_has-20231001.htm:33]** **[0000046080-23-000095_has-20231001.htm:45]** **[0000046080-23-000093_exhibit991q32023.htm:11]**   | **64.8**  **[0000046080-24-000008_exhibit991q42023.htm:7]**   | **48.8**  **[0000046080-24-000085_has-20240331.htm:12]** **[0000046080-24-000085_has-20240331.htm:32]**  | **62.6**  **[0000046080-24-000137_has-20240630.htm:13]**  | **81.9**  **[0000046080-24-000167_has-20240929.htm:14]**  |
| Latin America         | **90.8**  **[0000046080-23-000011_exhibit991q42022.htm:9]**   | **46.4**  **[0000046080-23-000042_has-20230402.htm:30]**   | **74.9**  **[0000046080-23-000083_has-20230702.htm:29]**   | **112.8**  **[0000046080-23-000095_has-20231001.htm:33]** **[0000046080-23-000095_has-20231001.htm:45]** **[0000046080-23-000093_exhibit991q32023.htm:11]**  | **77.4**  **[0000046080-24-000008_exhibit991q42023.htm:7]**   | **37.6**  **[0000046080-24-000085_has-20240331.htm:12]** **[0000046080-24-000085_has-20240331.htm:32]**  | **63.8**  **[0000046080-24-000137_has-20240630.htm:13]**  | **89.1**  **[0000046080-24-000167_has-20240929.htm:14]**  |
| Total Net Revenues    | **1,004.7**  **[0000046080-23-000011_exhibit991q42022.htm:9]**  | **520.4**  **[0000046080-23-000042_has-20230402.htm:30]**  | **655.2**  **[0000046080-23-000083_has-20230702.htm:29]**  | **956.9**  **[0000046080-23-000095_has-20231001.htm:33]** **[0000046080-23-000095_has-20231001.htm:45]** **[0000046080-23-000093_exhibit991q32023.htm:11]**  | **753.9**  **[0000046080-24-000008_exhibit991q42023.htm:7]**  | **413.0**  **[0000046080-24-000085_has-20240331.htm:12]** **[0000046080-24-000085_has-20240331.htm:32]**  | **524.5**  **[0000046080-24-000137_has-20240630.htm:13]**  | **860.1**  **[0000046080-24-000167_has-20240929.htm:14]**  |

445b979bf1c64abbea96cd880ca62c7cc5defc583728a11c29c5113df910f6fd

Adjustments for Non-Cash Items [USD, Thousands]

Stock-Based Compensation [USD, Thousands]

Changes in Working Capital [USD, Thousands]

Capital Expenditures (CapEx) [USD, Thousands]

Share Repurchases [USD, Thousands]

Dividend Payments [USD, Thousands]

Net Change in Cash [USD, Thousands]

20c65d06b664acb8b45d7886de8e30e4fe256456629aad1432ace2bf5dad51d2

| Metric (in millions USD) | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|--------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Consumer Products        | N/A     | $520.4  **[0000046080-23-000042_has-20230402.htm:28]** **[0000046080-23-000039_exhibit991q12023.htm:2]** **[0000046080-23-000042_has-20230402.htm:28]** **[0000046080-23-000039_exhibit991q12023.htm:2]** **[0000046080-23-000042_has-20230402.htm:28]** **[0000046080-23-000039_exhibit991q12023.htm:2]**  | $655.2  **[0000046080-23-000079_exhibit991q22023.htm:1]**  | $956.9  **[0000046080-23-000093_exhibit991q32023.htm:1]**  | $753.9  **[0000046080-24-000008_exhibit991q42023.htm:6]**  | $413.0  **[0000046080-24-000085_has-20240331.htm:25]**  | $524.5  **[0000046080-24-000137_has-20240630.htm:27]**  | $860.1  **[0000046080-24-000167_has-20240929.htm:29]**  |
| Wizards of the Coast and Digital Gaming | N/A | $295.2  **[0000046080-23-000042_has-20230402.htm:28]** **[0000046080-23-000039_exhibit991q12023.htm:2]** **[0000046080-23-000042_has-20230402.htm:28]** **[0000046080-23-000039_exhibit991q12023.htm:2]** **[0000046080-23-000042_has-20230402.htm:28]** **[0000046080-23-000039_exhibit991q12023.htm:2]**  | $375.6  **[0000046080-23-000079_exhibit991q22023.htm:1]**  | $423.6  **[0000046080-23-000093_exhibit991q32023.htm:1]**  | $363.2  **[0000046080-24-000008_exhibit991q42023.htm:6]**  | $316.3  **[0000046080-24-000085_has-20240331.htm:25]**  | $452.0  **[0000046080-24-000137_has-20240630.htm:27]**  | $404.0  **[0000046080-24-000167_has-20240929.htm:29]**  |
| Entertainment            | N/A     | $185.4  **[0000046080-23-000042_has-20230402.htm:28]** **[0000046080-23-000039_exhibit991q12023.htm:2]** **[0000046080-23-000042_has-20230402.htm:28]** **[0000046080-23-000039_exhibit991q12023.htm:2]** **[0000046080-23-000042_has-20230402.htm:28]** **[0000046080-23-000039_exhibit991q12023.htm:2]**  | $179.2  **[0000046080-23-000079_exhibit991q22023.htm:1]**  | $122.9  **[0000046080-23-000093_exhibit991q32023.htm:1]**  | $171.8  **[0000046080-24-000008_exhibit991q42023.htm:6]**  | $28.0  **[0000046080-24-000085_has-20240331.htm:25]**  | $18.8  **[0000046080-24-000137_has-20240630.htm:27]**  | $17.2  **[0000046080-24-000167_has-20240929.htm:29]**  |
| Total Net Revenues       | N/A     | $1,001.0  **[0000046080-23-000042_has-20230402.htm:28]** **[0000046080-23-000039_exhibit991q12023.htm:2]** **[0000046080-23-000042_has-20230402.htm:28]** **[0000046080-23-000039_exhibit991q12023.htm:2]** **[0000046080-23-000042_has-20230402.htm:28]** **[0000046080-23-000039_exhibit991q12023.htm:2]**  | $1,210.0  **[0000046080-23-000079_exhibit991q22023.htm:1]**  | N/A         | N/A         | $757.3  **[0000046080-24-000085_has-20240331.htm:25]**  | $995.3  **[0000046080-24-000137_has-20240630.htm:27]**  | $1,281.3  **[0000046080-24-000167_has-20240929.htm:29]**  |

b778416a9b1decf6535031fd91c7341fe6aadd4965d75e5be999c1f4e62ce77d

8d8b71d907b50e6fe45b0e7776b99783bf22ef69633ea73144658cb9716adbbf

Hasbro, Inc. is a global company engaged in the development, marketing, licensing, and sale of toys, games, and entertainment content **[0000046080-24-000034_has-20231231.htm:14]** **[0000046080-24-000085_has-20240331.htm:24]** **[0000046080-24-000034_has-20231231.htm:160]**. The company operates through four main segments, focusing on consumer products, digital gaming, and entertainment **[0000046080-24-000034_has-20231231.htm:14]** **[0000046080-24-000085_has-20240331.htm:24]** **[0000046080-24-000034_has-20231231.htm:160]**. Hasbro sells a wide range of products, including toys, games, and entertainment content, with significant contributions from its Consumer Products and Wizards of the Coast and Digital Gaming segments **[0000046080-24-000034_has-20231231.htm:14]** **[0000046080-24-000085_has-20240331.htm:24]** **[0000046080-24-000034_has-20231231.htm:160]**.

1. **Consumer Products** - Sources, markets, and sells toy and game products worldwide, significantly contributing to the company's revenue. Includes out-licensing of trademarks and intellectual property rights for branded consumer products like toys and apparel **[0000046080-24-000034_has-20231231.htm:14]** **[0000046080-24-000085_has-20240331.htm:24]** **[0000046080-24-000034_has-20231231.htm:160]**.

2. **Wizards of the Coast and Digital Gaming** - Focuses on trading card, role-playing, and digital game experiences based on Hasbro and Wizards of the Coast properties. Notable brands include MAGIC: THE GATHERING and DUNGEONS & DRAGONS, with MAGIC: THE GATHERING being particularly profitable **[0000046080-24-000034_has-20231231.htm:14]** **[0000046080-24-000085_has-20240331.htm:24]** **[0000046080-24-000034_has-20231231.htm:160]** **[HAS_3410798_1]**.

3. **Entertainment** - Develops and produces Hasbro-branded entertainment content, including film, television, and digital content. Involves licensing intellectual property for use in various entertainment formats **[0000046080-24-000034_has-20231231.htm:14]** **[0000046080-24-000085_has-20240331.htm:24]** **[0000046080-24-000034_has-20231231.htm:160]**.

4. **Corporate and Other** - Provides management and administrative services to the company's principal segments and includes unallocated corporate expenses **[0000046080-24-000034_has-20231231.htm:14]** **[0000046080-24-000085_has-20240331.htm:24]** **[0000046080-24-000034_has-20231231.htm:160]**.

ccb6ff26fab68360bdd3837882cef87dab3638534a64cd629627fbd3b726aa7c

1. You mentioned that half of the Q4 revenue call-down in Consumer Products is due to closeout volume reductions, and another 30%-40% is associated with Entertainment-backed brands like Star Wars. Could you elaborate on how these factors will impact your ability to achieve growth in the Consumer Products segment moving forward, especially considering the reliance on licensed brands?  **[HAS_3403599_5]** 

2. Given the significant decline in discounted toy volume, down 70% year-to-date, how do you plan to offset this decrease with "good" toy volume, and what strategies are in place to drive flat to up sales in nondiscounted products during the holiday season?  **[HAS_3403599_5]** 

3. With MAGIC: The Gathering outperforming expectations in the first three quarters but facing a decline in Q4 due to set timing and the absence of a holiday set like last year's Lord of the Rings release, how confident are you in MAGIC's ability to return to growth in 2025, and what initiatives are planned to sustain its momentum?  **[HAS_3403599_10]** **[HAS_3403599_11]** 

4. You indicated that supply chain savings accounted for 60% of your cost reductions this year, shifting to a 50-50 split between supply chain and managed expenses next year. Can you provide more specifics on where these additional supply chain efficiencies will come from, and how realistic is it to expect continued significant savings from these areas?  **[HAS_3403599_15]** 

5. As you transition to a leaner inventory structure, you mentioned experiencing "growing pains" and execution issues that affected revenues. What are the specific challenges you're facing in inventory management, and how are you addressing them to prevent similar impacts on future quarters?  **[HAS_3403599_5]** 

b9361fe2b5471211bb7ff3ac93de32629c50aaa083721b21e23465b84c2aeccc

Consumer Products

- North America

- Europe

- Asia Pacific

- Latin America

United States

International

Entertainment, Licensing and Digital Segment

Total Revenue

b0b0bd918df85d78806ecda7a4a59e06809363c56a6689094355b0eb76689af9

6a453e8a08f1d484a316f2b0110f7687204fe919fca517f6c9b32542bdf20f5d

d063b07c29410767d5c7ecea85ff3f849ecf575c17b906e4abca0449953a46f9

- **Large toy and game companies**: Compete in product categories and offer private label products at lower prices  **[0000046080-24-000034_has-20231231.htm:20]** .
- **Smaller United States and international toy and game designers, manufacturers, and marketers**: Compete in product categories  **[0000046080-24-000034_has-20231231.htm:20]** .
- **Digital gaming developers**: Focus primarily on digital gaming products and services for gaming consoles, personal computers, and mobile devices  **[0000046080-24-000034_has-20231231.htm:20]** .
- **Companies offering TV and film content and branded entertainment**: Specific to children and their families  **[0000046080-24-000034_has-20231231.htm:20]** .
- **Large retailers**: Offer products under their own private labels, often at lower prices  **[0000046080-24-000034_has-20231231.htm:20]** .
- **Major U.S. studios**: Part of large, diversified corporate groups with in-house production and distribution capabilities  **[0000046080-24-000034_has-20231231.htm:20]** .
- **Children's television networks**: Compete with the Discovery Family Channel for viewers, advertising revenue, and distribution fees  **[0000046080-24-000034_has-20231231.htm:20]** .
- **Technology companies**: Makers of tablets, mobile devices, video games, and other digital gaming products and screens, and social media companies  **[0000046080-24-000034_has-20231231.htm:20]** .

029700ca710d2768b44d2aa08bc4495cf16170b111074aaf17673782f855c763

**Quarterly guidance for Q4 2024:**
- **Consumer Products revenue**: mid-single-digit decline  **[HAS_3403599_5]**  (no prior guidance)  
- **Wizards of the Coast revenue**: expected to be down  **[HAS_3403599_11]** **[HAS_3403599_10]**  (no prior guidance)  
- **Operating profit margin**: pullback in Q4  **[HAS_3403599_12]** **[HAS_3403599_11]**  (no prior guidance)

**Annual guidance for FY 2025:**
- **Consumer Products revenue**: lowered full-year revenue guidance  **[HAS_3403599_1]** **[HAS_3403599_5]**  (no prior guidance)  
- **MONOPOLY GO! revenue**: $10 million in licensing revenue per month  **[HAS_3403599_2]** **[HAS_3403599_4]**  (no prior guidance)  
- **Operating profit margin**: aiming for close to 20%  **[HAS_3403599_12]** **[HAS_3403599_11]**  (no prior guidance)  
- **Cost savings**: continued focus on supply chain efficiencies and managed expenses  **[HAS_3403599_15]**  (no prior guidance)  

1bea29f9468fb21c5ecd441e52b2197988b411ca19b0858ba39fdf63efa5a8ac

f9c858abb8387c83829f30f2a11fc86ccf7dfb6ecb969e39afb81e868c0c1080

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: Q4 2024 and FY 2025
- **Guidance**:
  1. **Revenue Guidance**: Lowered full-year revenue guidance for the Consumer Products segment due to lower closeout volumes and softness in action figures, particularly Star Wars  **[HAS_3403599_1]** **[HAS_3403599_5]** .
  2. **Monopoly Go! Revenue**: Expected to generate approximately **$10 million in licensing revenue per month**  **[HAS_3403599_2]** **[HAS_3403599_4]** .
  3. **Operating Profit Margin**: Aiming for close to **20%** for the year, with a pullback in Q4  **[HAS_3403599_12]** **[HAS_3403599_11]** .
  4. **Wizards of the Coast Revenue**: Expected to be down in Q4  **[HAS_3403599_11]** **[HAS_3403599_10]** .
  5. **Cost Savings**: Continued focus on supply chain efficiencies and managed expenses  **[HAS_3403599_15]** .
  6. **Consumer Products Revenue**: Implies a mid-single-digit decline in Q4  **[HAS_3403599_5]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Wizards Revenue**: Expected to be down **1% to 3%**  **[HAS_3394268_5]** .
  2. **MONOPOLY GO! Revenue**: Anticipated to generate roughly **$105 million** for the full year  **[HAS_3394268_5]** .
  3. **Baldur's Gate 3 Revenue**: Expected to be roughly **$30 million**  **[HAS_3394268_5]** .
  4. **Digital Licensing**: Expected to be down in Q3, flat in Q4  **[HAS_3394268_5]** .
  5. **MAGIC**: Some contraction expected in the second half  **[HAS_3394268_5]** .
  6. **Wizards Operating Margin**: Forecasted to be approximately **42%**  **[HAS_3394268_5]** .
  7. **Consumer Products Revenue**: Expected to be down **7% to 11%**  **[HAS_3394268_5]** .
  8. **Consumer Products Adjusted Operating Margin**: Maintained at **4% to 6%**  **[HAS_3394268_5]** .
  9. **Entertainment Revenue**: Expected to be down approximately **$15 million**  **[HAS_3394268_5]** .
  10. **Entertainment Adjusted Operating Margin**: Expected to be roughly **60%**  **[HAS_3394268_5]** .
  11. **Cost Savings**: On track for **$750 million** by 2025  **[HAS_3394268_5]** .
  12. **Adjusted EBITDA**: Expected to be **$975 million to $1.025 billion**  **[HAS_3394268_5]** .
  13. **Ending Cash**: Expected to be similar to 2023  **[HAS_3394268_5]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Wizards Operating Margin**: Expected to be between **38% and 40%**  **[HAS_3380438_5]** .
  2. **Consumer Products Revenue**: Expected to decline by **7% to 12%**  **[HAS_3380438_5]** .
  3. **Total Hasbro EBITDA**: Expected to be **$925 million to $1 billion**  **[HAS_3380438_5]** .
  4. **Wizards Revenue**: Expected to decline by **3% to 5%**  **[HAS_3380438_4]** .
  5. **Cost Savings**: On track to deliver **$200 million** in 2024  **[HAS_3380438_5]** .
  6. **Inventory Levels**: Expected to remain flat versus 2023  **[HAS_3380438_5]** .
  7. **Capital Allocation Priorities**: Focus on core business investment and debt reduction  **[HAS_3380438_5]** .
  8. **Consumer Products Margin**: Expected to improve, aiming for double-digit margins by 2025  **[HAS_3380438_23]** .
  9. **Inflation Impact**: Expected to see about **2 points of inflation**  **[HAS_3380438_24]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Wizards Revenue**: Expected to decline by **3% to 5%**  **[HAS_3373054_5]** .
  2. **Consumer Products Revenue**: Forecasted to be down **7% to 12%**  **[HAS_3373054_6]** .
  3. **Entertainment Revenue**: Expected to be down approximately **$15 million**  **[HAS_3373054_6]** .
  4. **Total Hasbro EBITDA**: Forecasted to be **$925 million to $1 billion**  **[HAS_3373054_6]** .
  5. **Cost Savings**: Increased target to **$750 million** by 2025  **[HAS_3373054_6]** .
  6. **Capital Expenditure**: Estimated to be approximately **$225 million**  **[HAS_3373054_6]** .
  7. **Cash Position**: Expected to be slightly down versus 2023  **[HAS_3373054_6]** .
  8. **Long-term Revenue Growth**: Consumer Products to return to low single-digit growth, Wizards to mid- to high single-digit growth  **[HAS_3373054_7]** .

681ac67bb1fbce38bb7a55c5e18005a75bc759fd0d337eb266733d5bd19adb90

| Name             | Position                                                                 | Start Date       | Short Bio                                                                                                                                                                                                                                                                                                                                                   |
|------------------|--------------------------------------------------------------------------|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Christian Cocks  | Chief Executive Officer                                                  | February 25, 2022| Christian Cocks has served as the **Chief Executive Officer of Hasbro** since **February 25, 2022**. Before becoming CEO, he was the President and Chief Operating Officer of Wizards of the Coast and Digital Gaming from 2021, and prior to that, he served as President of Wizards of the Coast since 2016. He joined Hasbro from Microsoft  **[0000046080-24-000034_has-20231231.htm:27]** **[0000046080-23-000017_has-20221225.htm:6]** **[0001193125-24-085438_d814749ddef14a.htm:14]** **[0001193125-23-088813_d443850ddef14a.htm:31]** . |
| Gina Goetter     | Executive Vice President and Chief Financial Officer                     | May 18, 2023     | Gina Goetter serves as the **Executive Vice President and Chief Financial Officer** at Hasbro, Inc. She was appointed to this position effective **May 18, 2023**. Before joining Hasbro, Ms. Goetter was the Chief Financial Officer at Harley Davidson, Inc. from 2020 to 2023  **[0001193125-24-085438_d814749ddef14a.htm:39]** **[0000046080-24-000034_has-20231231.htm:27]** .                                                                       |
| Tim Kilpin       | President, Toys, Licensing & Entertainment                               | April 24, 2023   | Tim Kilpin serves as the **President, Toys, Licensing & Entertainment** at Hasbro. He was appointed to this position on **April 24, 2023**. Before joining Hasbro, Kilpin was the Executive Chairman and Chief Executive Officer of PlayMonster Group, LLC from 2020 to 2023  **[0000046080-24-000034_has-20231231.htm:27]** **[0001193125-24-085438_d814749ddef14a.htm:39]** **[0000046080-23-000095_has-20231001.htm:36]** .                                                                       |
| Cynthia Williams | President and Chief Operating Officer of Wizards of the Coast and Digital Gaming | 2022             | Cynthia Williams has been serving as the **President and Chief Operating Officer of Wizards of the Coast and Digital Gaming** at Hasbro since **2022**. Before joining Hasbro, she worked at Microsoft from 2018 to 2022  **[0000046080-24-000034_has-20231231.htm:27]** **[0001193125-23-088813_d443850ddef14a.htm:56]** **[0000046080-23-000017_has-20221225.htm:32]** **[0000046080-23-000017_has-20221225.htm:6]** .                                                                                                                     |
| Najuma Atkinson  | Chief People Officer                                                     | 2022             | Najuma Atkinson serves as the **Chief People Officer** at Hasbro, a position she has held since **2022**. Before joining Hasbro, she worked at Dell Technologies  **[0000046080-24-000034_has-20231231.htm:27]** .                                                                                                                                                                                      |
| Matthew Austin   | Chief Revenue Officer                                                   | 2023             | Matthew Austin is the **Chief Revenue Officer** at Hasbro, having started in this role in **2023**. Prior to this position, he served in various capacities at Hasbro, including as **Chief Commercial Officer from 2022 to 2023**  **[0000046080-24-000034_has-20231231.htm:27]** .                                                                                                                     |
| Tarrant Sibley   | Executive Vice President, Chief Legal Officer, and Secretary             | 2019             | Tarrant Sibley is the **Executive Vice President, Chief Legal Officer, and Secretary** at Hasbro, Inc. He has been serving in this role since **2019**  **[0000046080-24-000034_has-20231231.htm:27]** .                                                                                                                                                                                                |
| Frank Gibeau     | Board Member, Member of Finance and Capital Allocation Committee, and Cybersecurity and Data Privacy Committees | March 21, 2024   | Frank Gibeau joined the Board of Directors of Hasbro, Inc. on **March 21, 2024**. He serves as a member of the Finance and Capital Allocation Committee and the Cybersecurity and Data Privacy Committees  **[0000046080-24-000068_has-20240321.htm:1]** **[0001193125-24-085438_d814749ddef14a.htm:15]** **[0000046080-24-000068_pressreleasedatedmarch2520.htm:1]** .                                                                                                                                        |
| Darin Harris     | Board Member, Member of Audit Committee, and Nominating, Governance and Social Responsibility Committees        | 2024             | **Darin S. Harris** has been a director at Hasbro since **2024**. He serves on the **Audit Committee** and the **Nominating, Governance and Social Responsibility Committee**  **[0001193125-24-085438_d814749ddef14a.htm:16]** .                                                                                                                                                                         |
| Owen Mahoney     | Board Member, Member of Audit Committee, and Finance and Capital Allocation Committee                           | 2024             | Owen Mahoney has been a director at Hasbro since **2024**. He serves on the Audit Committee and the Finance and Capital Allocation Committee  **[0000046080-24-000068_has-20240321.htm:1]** **[0001193125-24-085438_d814749ddef14a.htm:17]** .                                                                                                                                                                                                       |

be58f482c908961b4436dc2b0194d1b2a9524446e278a8f096ecaf8c0b42baee

| Program Details          | Program 1       |
|--------------------------|-----------------|
| Approval Date            | May 2018  **[0000046080-24-000167_has-20240929.htm:58]**     |
| End Date/Duration        | No expiration  **[0000046080-24-000167_has-20240929.htm:58]** |
| Total additional amount  | $500 million  **[0000046080-24-000167_has-20240929.htm:58]** |
| Remaining authorization  | $241.6 million  **[0000046080-24-000167_has-20240929.htm:58]** |
| Details                  | Increase shareholder value; repurchases can be made in the open market or through privately negotiated transactions  **[0000046080-23-000083_has-20230702.htm:68]** **[0000046080-23-000095_has-20231001.htm:76]** **[0000046080-24-000137_has-20240630.htm:56]** **[0000046080-24-000167_has-20240929.htm:58]** **[0000046080-24-000085_has-20240331.htm:45]** **[0000046080-23-000042_has-20230402.htm:54]** **[0000046080-24-000034_has-20231231.htm:147]** **[0000046080-22-000069_has-20220327.htm:56]** **[0000046080-23-000017_has-20221225.htm:153]** **[0000046080-22-000123_has-20220925.htm:58]** |

f09580976da65ddb798e361e613aa2c266636554b47f7bb25f26fb9c8814243a

555f2249e596e68db720f332e0be27bc4d6a4003b6460c49feedf21ecbfa6425

| Name       | Start Date | End Date | Reason for Change |
|------------|------------|----------|-------------------|
| KPMG LLP   | At least 1968  **[0000046080-24-000034_has-20231231.htm:104]**  | Present  | Current auditor    |

dee038d13f9558a991da562a92e702653bb2413e3533f191afcf4e6dc9d9c29e

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

- Total Revenue: $1,281.3 million (−15% YoY)  **[0000046080-24-000167_has-20240929.htm:29]** **[0000046080-24-000167_has-20240929.htm:34]** **[0000046080-23-000095_has-20231001.htm:31]**   
- Consumer Products: $860.1 million (−10% YoY)  **[0000046080-24-000167_has-20240929.htm:29]** **[0000046080-24-000167_has-20240929.htm:34]** **[0000046080-23-000095_has-20231001.htm:31]** **[0000046080-23-000095_has-20231001.htm:45]**   
- Entertainment: $17.2 million (−86% YoY)  **[0000046080-24-000167_has-20240929.htm:29]** **[0000046080-24-000167_has-20240929.htm:34]** **[0000046080-23-000095_has-20231001.htm:31]** **[0000046080-23-000095_has-20231001.htm:45]**   
- Partner Brands: $190.1 million (−17% YoY)  **[0000046080-24-000167_has-20240929.htm:29]** **[0000046080-24-000167_has-20240929.htm:34]** **[0000046080-23-000095_has-20231001.htm:42]**   
- Portfolio Brands: $149.6 million (−12% YoY)  **[0000046080-24-000167_has-20240929.htm:29]** **[0000046080-24-000167_has-20240929.htm:34]** **[0000046080-23-000095_has-20231001.htm:42]**   
- Non-Hasbro Branded Film & TV: $0.0 million (down from $93.9 million; −100% YoY)  **[0000046080-24-000167_has-20240929.htm:29]** **[0000046080-24-000167_has-20240929.htm:34]** **[0000046080-23-000095_has-20231001.htm:42]**   
- Operating Income (EBIT): $301.9 million (up from −$169.5 million YoY)  **[0000046080-24-000167_has-20240929.htm:6]** **[0000046080-23-000095_has-20231001.htm:5]**   
- Net Income: $**223.2** million (up from −$171.5 million YoY)  **[0000046080-24-000167_has-20240929.htm:6]** **[0000046080-23-000095_has-20231001.htm:5]**   
- Asia Pacific Consumer Products: $81.9 million (+33% YoY)  **[0000046080-24-000167_has-20240929.htm:38]** **[0000046080-23-000095_has-20231001.htm:45]**   

2836639ef86754ca99434401276b2a24d62569da97f98b9fe519d228cb53409d

| Year | Amount Due (in millions) | Debt Type         | Interest Rate (%) | % of Total Debt                                                                 |
|----------|------------------------------|------------------------|-----------------------|------------------------------------------------------------------------------------|
| 2024     | $500.0 **[0000046080-24-000167_has-20240929.htm:19]**               | 3.00% Notes           | 3.00 **[0000046080-24-000167_has-20240929.htm:19]**          | 12.5% = (500.0 / 4000.0) * 100 **[0000046080-24-000167_has-20240929.htm:19]**                                            |
| 2026     | $675.0 **[0000046080-24-000167_has-20240929.htm:19]**               | 3.55% Notes           | 3.55 **[0000046080-24-000167_has-20240929.htm:19]**          | 16.9% = (675.0 / 4000.0) * 100 **[0000046080-24-000167_has-20240929.htm:19]**                                            |
| 2027     | $500.0 **[0000046080-24-000167_has-20240929.htm:19]**               | 3.50% Notes           | 3.50 **[0000046080-24-000167_has-20240929.htm:19]**          | 12.5% = (500.0 / 4000.0) * 100 **[0000046080-24-000167_has-20240929.htm:19]**                                            |
| 2028     | $109.9 **[0000046080-24-000167_has-20240929.htm:19]**               | 6.60% Debentures      | 6.60 **[0000046080-24-000167_has-20240929.htm:19]**          | 2.7% = (109.9 / 4000.0) * 100 **[0000046080-24-000167_has-20240929.htm:19]**                                             |
| 2029     | $900.0 **[0000046080-24-000167_has-20240929.htm:19]**               | 3.90% Notes           | 3.90 **[0000046080-24-000167_has-20240929.htm:19]**          | 22.5% = (900.0 / 4000.0) * 100 **[0000046080-24-000167_has-20240929.htm:19]**                                            |
| 2034     | $500.0 **[0000046080-24-000167_has-20240929.htm:19]**               | 6.05% Notes           | 6.05 **[0000046080-24-000167_has-20240929.htm:19]**          | 12.5% = (500.0 / 4000.0) * 100 **[0000046080-24-000167_has-20240929.htm:19]**                                            |
| 2040     | $500.0 **[0000046080-24-000167_has-20240929.htm:19]**               | 6.35% Notes           | 6.35 **[0000046080-24-000167_has-20240929.htm:19]**          | 12.5% = (500.0 / 4000.0) * 100 **[0000046080-24-000167_has-20240929.htm:19]**                                            |
| 2044     | $300.0 **[0000046080-24-000167_has-20240929.htm:19]**               | 5.10% Notes           | 5.10 **[0000046080-24-000167_has-20240929.htm:19]**          | 7.5% = (300.0 / 4000.0) * 100 **[0000046080-24-000167_has-20240929.htm:19]**                                             |

4fd99be72205f2505d6977bdea85bc1b49bd7350677d8593457792738526d5c3

1aadb8742da9c3486358cf4b19dff167d1fbfb296cd10156d5876da9dcce35fe

1. **Guidance Raise Driven by MONOPOLY GO! and MAGIC Performance**  
   **Q:** Is the guidance raise due to MONOPOLY GO! outperforming and better MAGIC performance?  
   **A:** Yes, the guidance raise is primarily driven by the **$35 million** overperformance from MONOPOLY GO!, which directly contributes to the EBITDA update.  **[HAS_3394268_8]**  Additionally, MAGIC: THE GATHERING performed better than expected, with Modern Horizons 3 proving to be a fair comp against Lord of the Rings.  **[HAS_3394268_8]** 

2. **Outlook for MONOPOLY GO! Revenue**  
   **Q:** How is MONOPOLY GO! expected to perform in the second half?  
   **A:** MONOPOLY GO! generated **$45 million** in revenue in the first half, including **$40 million** in Q2.  **[HAS_3394268_9]**  The company expects **$60 million** in the back half, anticipating a slight step down due to expected monthly decay rates of **3% to 5%** and variable marketing spend by Scopely.  **[HAS_3394268_9]**  Despite near-term uncertainties, they are optimistic about its long-term potential as a strong annuity.  **[HAS_3394268_9]** 

3. **Margin Outlook and Wizards' Second Half Headwinds**  
   **Q:** What are the margin headwinds for the Wizards business in the second half?  
   **A:** The major margin headwind is the lapping of last year's Baldur's Gate release, which significantly boosted prior-year revenue.  **[HAS_3394268_14]**  While MONOPOLY GO! will contribute in the back half, it won't fully offset the impact from Baldur's Gate.  **[HAS_3394268_14]**  Additionally, a lighter MAGIC release schedule will affect margins.  **[HAS_3394268_14]** 

4. **Path to 20% EBIT Margin Before 2027**  
   **Q:** Why can't Hasbro reach a 20% EBIT margin before 2027?  
   **A:** The company is close to achieving the **20%** target and could reach it sooner if MONOPOLY GO! and Consumer Products perform better than current guidance.  **[HAS_3394268_14]**  However, they are not committing to additional cost savings beyond the current **$200 million to $250 million** net cost savings for the year.  **[HAS_3394268_14]** 

5. **Strategic Shift to Games and Digital Focus**  
   **Q:** How does Hasbro's strategic shift toward games impact its future?  
   **A:** Hasbro recognizes that play is aging up, becoming more digital and direct.  **[HAS_3394268_11]**  Focusing on games and intellectual property aligns with growth trends and higher profitability.  **[HAS_3394268_11]**  This shift positions the company well for where the industry is headed, emphasizing digital gaming and key partnerships.  **[HAS_3394268_11]** 

6. **Consumer Products Turnaround and Margin Improvement**  
   **Q:** Can the Consumer Products business reach double-digit margins by Q4?  
   **A:** Yes, the company anticipates achieving around **10%** margin in Q4, driven by volume leverage.  **[HAS_3394268_18]**  Efforts this year on pricing, mix, and product design are expected to contribute to sustained double-digit margins as they move into 2025 and 2026.  **[HAS_3394268_18]** 

7. **Signs of Improvement in Consumer Products**  
   **Q:** What are the positive signs in the Consumer Products business?  
   **A:** Early performance of products like Beyblade, which is selling out quickly in select markets, is encouraging.  **[HAS_3394268_17]**  Other strong performers include Furby, Peppa Pig, Transformers, and Dungeons & Dragons.  **[HAS_3394268_17]**  Additionally, inventory levels are healthy, with retail inventory down **18% to 20%** in the quarter.  **[HAS_3394268_17]** 

8. **Impact of Transformers Movie and Future Outlook**  
   **Q:** How did the Transformers movie affect sales and what's expected ahead?  
   **A:** Transformers POS was down about **5% to 6%** in the first half, following a **90%** increase in Q2 2023 due to prior movie releases.  **[HAS_3394268_12]**  A surge is expected starting in August/September with the release of Transformers One, anticipated to drive strong toy sales in Q3 and Q4.  **[HAS_3394268_12]** 

9. **Magic: The Gathering Performance and Future Releases**  
   **Q:** How is MAGIC: THE GATHERING performing and what's the outlook?  
   **A:** Modern Horizons 3 outperformed Lord of the Rings within the quarter and is off to a strong start.  **[HAS_3394268_16]**  While it may not surpass Lord of the Rings over the full year due to the release schedule, it is expected to have a long tail into 2025 and potentially 2026.  **[HAS_3394268_16]** 

10. **Gross Margin Improvement and Cost Savings**  
    **Q:** What is the underlying gross margin rate and how will it improve?  
    **A:** The underlying gross margin is around **73%** after adjusting for certain impacts.  **[HAS_3394268_13]**  Continued mix shift toward digital and ongoing cost savings in purchasing and personnel will drive margin expansion in the back half and into 2025 and 2026.  **[HAS_3394268_13]** 

24162fb7853603758a0b0588ba5b38ec95801463c02dad5cbd8bb326d8a38d1b

1. **Margin Outlook and Corporate Profit**  
   **Q:** Why can't you reach 20% margin this year? Any non-recurring profits?  
   **A:** While our margin performance is strong, about **half of the $45 million** profit in the corporate segment came from a stock compensation adjustment that **will not repeat**. This adjustment contributed approximately **2.5%** to our margin, which won't carry forward. Factors like supply chain performance are positive, but we need to see how the year unfolds before committing to the **20% margin target** ahead of 2027.  **[HAS_3380438_8]** 

2. **Digital Growth and MONOPOLY GO!**  
   **Q:** Given strong MONOPOLY GO!, why not raise digital guidance?  
   **A:** It's too early in the year to adjust our guidance, but trends are favorable. If current revenue and advertising spend continue, we could see upside and likely exceed the minimum guarantee within **Q2**. We're monitoring performance and may update guidance as we progress through the quarter.  **[HAS_3380438_14]** **[HAS_3380438_17]** 

3. **Consumer Products POS Trends and Q2 Outlook**  
   **Q:** How is Hasbro's POS and outlook for Q2 Consumer Products?  
   **A:** In Q1, our POS showed healthy trends, especially in March, continuing into April. However, we're cautious about **Q2** due to a lighter entertainment slate compared to last year, which included releases like the **D&D movie** and **Transformers: Rise of the Beasts**. Reduction in closeout volumes is a positive for margins but negatively impacts revenue.  **[HAS_3380438_9]** 

4. **Positive Bottom Line Comps for Consumer Products**  
   **Q:** Will Consumer Products see positive bottom line comps?  
   **A:** Yes, we expect margins to improve along with the top line. We'll be down similarly in **Q2**, but anticipate a rebound in **Q3** and return to growth in **Q4**. Margins are growing, and the absence of last year's inventory overhang will further expand margins in **Q4**.  **[HAS_3380438_10]** 

5. **Performance of Magic: The Gathering and Future Sets**  
   **Q:** How is Fallout Commander performing, and outlook on future Magic sets?  
   **A:** **Fallout Commander** is probably our **best-performing Commander set ever**. Engagement in **MAGIC** has reached pre-pandemic levels. We're optimistic about upcoming sets like **Outlaws of Thunder Junction** and view future sets like **Final Fantasy** and **Marvel** as significant, potentially matching the success of **Lord of the Rings**. Marvel is a huge IP, and **Final Fantasy** sales in Japan may **dwarf** what we did with Lord of the Rings.  **[HAS_3380438_11]** 

6. **EPS Guidance and Street Expectations**  
   **Q:** Can you refine guidance to indicate EPS expectations?  
   **A:** We don't provide specific EPS guidance. Models align closely with our internal calculations. Keep in mind we had about **$0.10** of favorability from a stock compensation adjustment that will carry forward, but we're not giving specific EPS guidance at this point.  **[HAS_3380438_6]** 

7. **Margins for the Rest of the Year**  
   **Q:** What's the expected margin cadence for the year?  
   **A:** Our focus on games, IP, and toys is driving margin improvements. Supply chain productivity is offsetting inflation, and operating expense reductions continue. While **Q3** margins may dip slightly year-over-year due to last year's successes like **Baldur's Gate 3** and **MONOPOLY GO!**, our cost structure improvements will support margins throughout the year.  **[HAS_3380438_13]** 

8. **Full-Year Industry Expectations**  
   **Q:** Have your expectations changed for full-year industry trends?  
   **A:** **Q1** was positive, with momentum continuing into **Q2**. It's early, and the toy industry has been unpredictable recently. We're monitoring the situation, especially due to a pause in entertainment content that drives toy sales, but remain cautiously optimistic.  **[HAS_3380438_12]** 

9. **Update on Magic Arena**  
   **Q:** What's the update on Magic Arena's performance?  
   **A:** Magic Arena was down slightly in **Q1**, mainly due to not lapping last year's reset for **Shadows over Innistrad**. Excluding that, it aligned with the overall property, which was up about **4%** in tabletop. We're investing in Arena and planning a platform refresh over the coming years to broaden its appeal.  **[HAS_3380438_7]** 

10. **Corporate Line Item and Operational Excellence**  
    **Q:** What's the composition of the $45 million corporate profit, and will it continue?  
    **A:** Half of the **$45 million** profit came from a non-recurring stock compensation adjustment. The other half is due to operational excellence programs like purchase and people cost savings. This favorability will be allocated back to segments over the year; it's a timing element. Last year, corporate operating profit was roughly **$20 million** annually.  **[HAS_3380438_15]** 

11. **Impact of MONOPOLY GO! on Financials**  
    **Q:** Could MONOPOLY GO! contribute $50–$70 million or more?  
    **A:** We're not prepared to provide specific sizing, but if current trends continue, it will be favorable, and we may exceed the minimum guarantee within **Q2**.  **[HAS_3380438_17]** 

12. **Freight Market Impact**  
    **Q:** How is the freight market affecting margins given Middle East disruptions?  
    **A:** The impact has been **immaterial**, less than a couple hundred thousand dollars. Freight rates are decreasing, benefiting our P&L. Our team is effectively managing logistics to maintain costs.  **[HAS_3380438_18]** 

13. **Marketing Strategy Success**  
    **Q:** What are you doing differently in marketing that's working?  
    **A:** We're focusing on measurable, primarily digital spend, investing near the point of sale. This has significantly improved our return on advertising spend. Continued success will drive top-line growth with positive flow-through to the bottom line due to our cost efficiencies.  **[HAS_3380438_17]** 

14. **Exposure to China**  
    **Q:** What's your current exposure to China?  
    **A:** Approximately **40%** of our production volume is sourced from China, but only **5–10%** of total profit is associated with China. Many of our profit pools are nearshore, which is advantageous given global freight uncertainties.  **[HAS_3380438_27]** 

15. **Licensing Strategy and Brand Ownership**  
    **Q:** Does licensing success change your need to own brands?  
    **A:** No, it's validating our choice to license certain brands that don't meet our revenue and margin thresholds. We've likely completed brand outsourcing, focusing now on leveraging our brands for category expansion through partnerships.  **[HAS_3380438_25]** 

16. **Timing Shifts in Magic Revenue**  
    **Q:** Were there timing shifts supporting Magic's quarter, and what's the outlook?  
    **A:** A bit of **Outlaws of Thunder Junction** shifted from **Q2** to **Q1**, which helped. We don't anticipate significant quarter-over-quarter shifts for the rest of the year, but **Q4** may have a lighter release schedule.  **[HAS_3380438_20]** 

17. **Consumer Products Margin Improvement**  
    **Q:** Can you discuss Consumer Products margin trajectory into 2025?  
    **A:** We're on track to achieve our **4–6%** margin guidance for Consumer Products this year. We're aiming for double-digit margins by 2025 through cost structure improvements, supply chain refinements, and design-to-value initiatives, which will have more impact in **2024** and **2025**.  **[HAS_3380438_23]** 

18. **Impact of Easter Timing on Results**  
    **Q:** How did Easter timing affect the quarter and outlook?  
    **A:** Easter provided a modest lift of about **1–2 points** in the quarter. Positive POS trends are continuing into April, so the impact on **Q2** is expected to be minimal.  **[HAS_3380438_26]** 

19. **Freight and Labor Cost Inflation**  
    **Q:** Why are you seeing cost inflation when others report deflation?  
    **A:** We're experiencing about **2 points** of inflation, mainly in labor and materials like resin. Freight rates are stabilizing, and we're focusing on supply chain productivity to offset costs, leading to gross margin improvements.  **[HAS_3380438_24]** 

20. **Licensing Strategy Continuation**  
    **Q:** Will you continue licensing out brands like POWER RANGERS?  
    **A:** We've likely completed our brand outsourcing. Our strategy is now to leverage our brands for category expansion through partnerships, not necessarily to own all brands in-house.  **[HAS_3380438_25]** 

8469ae83c6fab3ecd4f5f67c5a867f4d965956ae8f4a566a1edb901c1e404562

- **Hasbro expects toy revenue to decline by high single digits in 2024, indicating ongoing weakness in their core toy business.**  **[HAS_3394268_15]**
- **The company's guidance raise is primarily due to the overperformance of MONOPOLY GO! and a $20 million one-time benefit from an international publishing contract, suggesting reliance on non-recurring items rather than underlying business strength.**  **[HAS_3394268_8]**
- **Hasbro admits to losing volume in its core toy business for several quarters and acknowledges the need for a turnaround, posing a risk if the expected recovery does not materialize.**  **[HAS_3394268_11]**

0708abf6fcf3b818d1e45b38b9e3358cde57ae9700d06d75128efa701aa50770

- **Strong performance and growth in digital gaming and licensing, particularly with _MONOPOLY GO!_ and _MAGIC: THE GATHERING_, exceeding expectations and driving increases in guidance.**  **[HAS_3394268_8]** **[HAS_3394268_5]** **[HAS_3394268_9]**
- **Positive momentum in Consumer Products with encouraging early demand signals and successful product launches like _Beyblade_, _Furby_, _Peppa Pig_, and _Dungeons & Dragons_, indicating potential return to growth in Q4 and into 2025.**  **[HAS_3394268_17]** **[HAS_3394268_10]**
- **Strategic focus on games, IP, and digital, positioning Hasbro well for future growth by aligning with industry megatrends, including aging up of play, increased digitization, and international expansion, leading to a more profitable and agile company.**  **[HAS_3394268_11]**

92d08e80620d2e291f234720cb9ecfc40951c679a1c31e4f6eeda024e30b8123

- **Monopoly Go! continues to generate steady revenue of approximately $10 million per month for Hasbro, with healthy user acquisition rates and strong engagement, signaling sustained success in digital gaming and IP licensing.**  **[HAS_3403599_4]**
- **MAGIC: THE GATHERING has outperformed expectations, posting growth driven by successful releases with both analog and digital formats showing strength, reinforcing confidence in the brand's long-term health and future growth prospects.**  **[HAS_3403599_10]**
- **Hasbro's strategic shift towards higher-margin products and partnerships, along with operational improvements, is enhancing profitability, evidenced by strong Consumer Products margins and expectations of continued improvement in sell-through due to better product positioning and retail alignment.**  **[HAS_3403599_5]** **[HAS_3403599_6]** **[HAS_3403599_7]**

4f6f2461bec85e5ce3c7f0c554cd2171cc1c410882ffea86a6ca67f54c5f9a8f

- **Hasbro has largely completed its brand pruning and is now focusing on brand creation and expansion, positioning for future growth.**  **[HAS_3373054_20]**
- **The company expects sequential annual growth in its digital gaming and licensing business, expanding the number of licensors, with successful games like MONOPOLY GO becoming more profitable.**  **[HAS_3373054_18]**
- **Hasbro anticipates growth in Q4 2024 driven by strong product innovations in key brands such as NERF, PLAY-DOH, and the launch of Beyblade X, with strong retailer support.**  **[HAS_3373054_11]**

b404f639322fd7cff0dd54b206dec4601d7036e98809470475c2643b3a0096a0

- **Hasbro lowered its Consumer Products revenue guidance**, citing approximately **$100 million** reduction due to lower closeout volumes, softness in entertainment-backed brands like **Star Wars**, and execution issues transitioning to a leaner inventory structure. This indicates potential revenue declines in Q4.  **[HAS_3403599_5]**
- **Year-to-date point-of-sale (POS) for Hasbro is down high single digits**, excluding divested brands, which is worse than the overall toy industry decline of low single digits, suggesting Hasbro is underperforming the market.  **[HAS_3403599_13]**
- **Downloads of Monopoly Go! have continued to decline significantly**, as highlighted by analysts, raising concerns about the sustainability of its revenue contributions, despite management's expectation of approximately **$10 million in monthly royalty revenue**.  **[HAS_3403599_4]**

ac5a62bf5cf1f3ac37a11ed0ad179fed9986833cb6a8f44c4f32f898c2e2fa5f

1. **2024 EBITDA Guidance**  
   **Q:** Bridge us to 2024 EBITDA guidance?  
   **A:** Operating cash flow is projected to be slightly down due to prior inventory benefits. Non-recurring charges are returning, benefiting next year, but offset by volume decline as revenue decreases. We expect supply chain productivity to offset **3% inflation**, mainly from labor, resin, and fuel costs. Net cost savings of **$200 million to $250 million** are embedded, stemming from supply chain productivity and reductions in managed expenses. The big negative is the revenue decline impacting de-leverage.  **[HAS_3373054_13]** ,  **[HAS_3373054_16]** ,  **[HAS_3373054_17]** 

2. **Dividend Safety**  
   **Q:** Is the dividend safe given debt levels?  
   **A:** We remain supportive of our capital allocation strategy, including the dividend. Actions in '23 and '24 to free up cash support these priorities. We're committed to reaching our leverage targets and believe fixing the business will free up our ability to meet all capital allocation goals.  **[HAS_3373054_26]** 

3. **Growth Outlook for D&D**  
   **Q:** Does the $500M D&D guidance still hold?  
   **A:** Yes, the guidance holds, aiming for around **$500 million** in revenue over a 3- to 4-year period, targeting **2027**. The D&D brand is progressing as expected, with contributors including the D&D Beyond platform, new entertainment like the Paramount streaming series, and successful video games like **Baldur's Gate III**, which earned multiple Game of the Year awards.  **[HAS_3373054_10]** ,  **[HAS_3373054_14]** 

4. **Universes Beyond Impact**  
   **Q:** Expectations for future Universes Beyond sets?  
   **A:** Last year's **Magic: The Lord of the Rings** set did over **$200 million** in under six months. Starting in 2025, two of six premier sets per year will be Universes Beyond branded, featuring major IPs like **Final Fantasy** and **Marvel**, expected to attract new players and expand the user base similarly or greater than Lord of the Rings did.  **[HAS_3373054_12]** ,  **[HAS_3373054_19]** 

5. **CapEx and Margin Outlook**  
   **Q:** What's the medium-term margin and CapEx outlook?  
   **A:** We're committed to achieving a **20%** midterm margin target. In Consumer Products, margins will improve with volume growth and continued cost structure refinements. CapEx is stepping up to **$225 million** this year, mainly driven by investment in digital games—half allocated to the Wizards business. Investments in digital gaming are foundational and expected to be a material source of value creation over the next 3 to 5 years.  **[HAS_3373054_28]** 

6. **Toy Industry Outlook**  
   **Q:** Why expect industry down 8% in 2024?  
   **A:** We think trends from the back half of 2023 will persist into 2024 due to post-COVID corrections, especially in the U.S. We still see growth in Latin America and Southeast Asia. After 2024, we anticipate being past the correction and expect the toy market to be around flat, planning to grow at or ahead of that level.  **[HAS_3373054_22]** 

7. **Consumer Products Revenue Guidance**  
   **Q:** Expectations for Consumer Products revenue?  
   **A:** We're guiding **7% to 12% down**, with steeper declines in Q1 and Q2, stabilizing in Q3, and planning for growth in Q4. Shipments will more closely align with POS. Exiting certain licenses accounts for roughly **4 points** of the decline. In a down 3% scenario, we'd be over-delivering and gaining share; down 8% would be moving in line with the market.  **[HAS_3373054_11]** ,  **[HAS_3373054_15]** 

8. **Cash Flow and Balance**  
   **Q:** Will operating cash flow be negative in 2024?  
   **A:** Operating cash flow will be slightly down due to the inventory benefit captured in 2023, but we don't expect negative free cash flow. Ending cash will be relatively flat year-over-year, slightly down due to a step-up in CapEx and additional charges from December announcements.  **[HAS_3373054_25]** 

9. **Digital Games Cadence**  
   **Q:** What is the future cadence for digital games?  
   **A:** Starting in **2026**, we'll likely publish one major new digital game annually, with **1–2 games** per year from 2027 to 2030, depending on schedules. Licensing revenue may dip this year due to last year's **Baldur's Gate III** bulge but will grow sequentially thereafter. Licensing mix tends to be more mobile and casino gambling, while publishing efforts focus on PC and console.  **[HAS_3373054_18]** 

10. **Flexibility Amid Industry Downturn**  
    **Q:** Any levers if industry worsens in 2024?  
    **A:** We have a cautious outlook but possess ample liquidity—over **$1.8 billion**—and tools to manage a down quarter or two. Our new management is adept at cost and supply chain management, and we're confident in our ability to execute capital allocation priorities, including investing for growth, maintaining the dividend, and achieving leverage targets below **2.5x**.  **[HAS_3373054_27]** 

bfd59bdcf940cd63628995f3c996097c46aa0bc4a25732e8a9d6c560c2cbac5f

- **Expected return to growth and improving margins in the Consumer Products segment, with margins approaching double digits by 2025 driven by cost structure improvements and supply chain refinements.**  **[HAS_3380438_10]** **[HAS_3380438_23]**
- **Strong performance in digital gaming, particularly with MONOPOLY GO!, indicating potential upside if favorable trends continue.**  **[HAS_3380438_14]**
- **Wizards of the Coast segment anticipates favorable revenue and operating margin in Q2, driven by the release schedule and a favorable shift towards digital, resulting in consistent growth trends.**  **[HAS_3380438_19]**

4fd767ca2d4712b874833c3fd1769c31bfbfdae3f8cb22ff9fef1b3559ce72f9

- **Approximately 40% of Hasbro's total volume is built in China**  **[HAS_3380438_27]** , exposing the company to risks from geopolitical tensions, tariffs, and supply chain disruptions.
- The Q1 earnings beat included a **one-time $0.10 per share favorable stock compensation adjustment** that will not recur in future quarters  **[HAS_3380438_22]** **[HAS_3380438_6]** , suggesting future earnings may be lower.
- Hasbro is experiencing **2% cost inflation**  **[HAS_3380438_24]** , driven by labor and material costs, while some competitors report deflation, potentially pressuring future margins.

ffb7e7e53fb78d0ae159493ff32cb67d8ad65b0caea2dbc5be60be74401a7fe8

1. **Monopoly Go! Revenue Outlook**  
   **Q:** Is the $10M/month royalty revenue from Monopoly Go! sustainable?  
   **A:** Management expects **$10 million per month** in royalty revenue from Monopoly Go! to remain steady for many months to come.  **[HAS_3403599_4]**  They see healthy user acquisition rates, strong engagement, and successful initiatives like Tycoon Club, which could even increase revenue.  **[HAS_3403599_4]**  They anticipate Monopoly Go! in 2025 to be **flat to up** versus 2024.  **[HAS_3403599_7]** 

2. **Wizards of the Coast Revenue Decline**  
   **Q:** Why is Wizards' Q4 revenue and margin expected to decline?  
   **A:** The decline is due to **MAGIC set timing**, specifically not having a comparable **Lord of the Rings holiday set** in Q4 this year.  **[HAS_3403599_11]**  This absence impacts both revenue and margins due to volume deleverage.  **[HAS_3403599_11]**  Additionally, the timing of January sets affects when revenue is recognized.  **[HAS_3403599_11]** 

3. **Consumer Products Guidance Reduction**  
   **Q:** What caused the reduction in Consumer Products guidance?  
   **A:** The guidance reduction of about **$100 million** is due to lower closeout volumes (about half), underperformance in entertainment-backed brands like **Star Wars** (30–40%), and challenges from leaner inventory structures.  **[HAS_3403599_5]**  Despite this, POS expectations haven't materially changed.  **[HAS_3403599_5]** 

4. **Impact of Exited Brands**  
   **Q:** How did exited brands impact results, and what's expected ahead?  
   **A:** Exited brands negatively impacted revenue by about **$25 million** in both Q3 and expected similarly in Q4.  **[HAS_3403599_7]**  Next year, they expect to earn healthier royalties from these outsourced brands, surpassing previous operating margins.  **[HAS_3403599_7]** 

5. **MAGIC Revenue Outlook**  
   **Q:** Will MAGIC revenue decline this year despite recent outperformance?  
   **A:** Yes, MAGIC is expected to decline due to the lack of a **holiday set** comparable to last year's Lord of the Rings release.  **[HAS_3403599_9]** **[HAS_3403599_11]**  While MAGIC outperformed in the first three quarters, set timing affects the full-year outlook.  **[HAS_3403599_9]** 

6. **Baldur's Gate 3 Performance**  
   **Q:** How will Baldur's Gate 3 continue to contribute financially?  
   **A:** Baldur's Gate 3 exceeded expectations, contributing about **$35 million** this year.  **[HAS_3403599_8]**  While not expected to remain at this level, management anticipates continued revenue for several years due to strong partnership with Larian and ongoing community engagement.  **[HAS_3403599_8]** 

7. **POS Trends and Holiday Outlook**  
   **Q:** What's the POS trend and holiday expectation?  
   **A:** Year-to-date POS is down **high single digits** excluding divested brands.  **[HAS_3403599_13]**  The toy industry, excluding building blocks, is down **2% to 5%**, and this trend is expected to continue through the holiday season.  **[HAS_3403599_13]** 

8. **Cost Savings Opportunities**  
   **Q:** What are the remaining cost savings opportunities?  
   **A:** Next year's cost savings will be balanced between supply chain (about **50%**) and managed expenses.  **[HAS_3403599_15]**  Initiatives include design-to-value savings and refining supplier and logistics networks.  **[HAS_3403599_15]** 

9. **Holiday Season Expectations**  
   **Q:** How is retailer sentiment ahead of the holidays?  
   **A:** Retailer sentiment remains supportive and unchanged.  **[HAS_3403599_14]**  Management is excited about brands like **Play-Doh**, **Beyblade X**, **Transformers**, **Marvel**, and their board game portfolio for the fourth quarter.  **[HAS_3403599_14]** 

10. **Future of MAGIC and Marvel Collaboration**  
    **Q:** What's the outlook for the upcoming MAGIC Marvel releases?  
    **A:** Upcoming Marvel Secret Lair drops are expected to generate **low to mid-single-digit millions** per release.  **[HAS_3403599_17]**  A major **Spider-Man** set is planned for the second half of next year, with more collaborations over the next 4–5 years.  **[HAS_3403599_17]**  Management sees a bright future for MAGIC, contributing to top-line growth in 2025.  **[HAS_3403599_17]** 

11. **Relationship with Scopely**  
    **Q:** How is Hasbro's relationship with Scopely evolving?  
    **A:** Hasbro values Scopely as a strong partner in mobile gaming.  **[HAS_3403599_16]**  They collaborate on games like Yahtzee, Scrabble, and Monopoly Go!, and are open to future projects leveraging Hasbro's IP.  **[HAS_3403599_16]**  Scopely's innovations, such as Tycoon Club and in-game events, enhance player engagement and can increase Hasbro's royalty revenue.  **[HAS_3403599_16]** 

dfb08b04407c952815150d97465aa0a67d761dfdb9eeaa6d0d879cec33fdb03e

- **Hasbro's internal point-of-sale measurements decreased by 12%-13% in Q4 2023**, and the company expects unfavorable industry trends to persist through 2024, indicating potential continued sales declines.  **[HAS_3373054_22]**
- **Digital game licensing revenue is projected to be flat in 2024**, suggesting no growth in a previously strong segment despite previous successes like MONOPOLY GO and Baldur's Gate III.  **[HAS_3373054_24]**
- **No major new digital game releases are expected until 2026**, which may hinder growth in Hasbro's digital gaming segment over the next two years.  **[HAS_3373054_18]**

b64ad3c17cd0bd16d3afccac35fbdd2818b25b7901ee8a53631852cf3eed4d7b

Hasbro Inc (HAS)

Financials