Shares of Hasbro, Inc. (NASDAQ:HAS) fell 4% after-hours Thursday after the company announced it will cut 1,000 jobs and provided preliminary fourth-quarter results below the Wall Street consensus on a weak consumer product business.
The toy maker said it will cut 15% of its global workforce this year, with the cuts starting within the next several weeks.
The job cuts, along with the ongoing systems and supply chain investments, will help the company achieve its goal of $250-300 million in annual run-rate cost savings by year-end 2025.
The CEO, Chris Cocks, said the Consumer Products business underperformed in the fourth quarter against the backdrop of a challenging holiday consumer environment. This is despite strong growth in Wizards of the Coast and Digital Gaming, Hasbro Pulse, and their licensing business.
The company now sees Q4 revenue down 17% from last year to $1.68 billion, which compares to the current Wall Street consensus of $1.92 billion.
The company sees preliminary adjusted earnings per diluted share of $1.29 to $1.31, versus the consensus of $1.48.
Shares of Hasbro are down 4% after-hours on the news, while peer Mattel, Inc. (NASDAQ:MAT) is down 1.5%.
By StreetInsider.com Staff