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Shares of the Transformers toy maker fell nearly 7% to $59.50 in extended trading after the company said it would eliminate about 1,000 full-time positions globally in a bid to cut costs.
Shares of rival Mattel Inc (NASDAQ:MAT) also slipped about 2%.
Hasbro (NASDAQ:HAS) said the job cuts would start to take effect within the next several weeks, adding the reductions were “necessary to return our business to a competitive, industry-leading position.”
The maker of “Magic: The Gathering” game in October warned that demand was starting to slip ahead of the holiday season, as the company’s moves to raise prices to counter inflation prompted customers to cut spending on its products.
“Despite strong growth in Wizards of the Coast and Digital Gaming… our consumer products business underperformed in the fourth quarter against the backdrop of a challenging holiday consumer environment,” Chief Executive Officer Chris Cocks said on Thursday.
The Monopoly maker estimated a 26% slump in revenue from its consumer products segment, which sells toys, games, apparel and music, compared with a 22% jump in its Wizards of the Coast and Digital Gaming business.
Hasbro estimated fourth-quarter revenue of about $1.68 billion, down 17% from a year earlier. Analysts on average expect revenue of $1.92 billion, according to Refinitiv IBES data.
The company, which is set to report holiday-quarter results on Feb. 16, estimated quarterly adjusted earnings per share of $1.29 to $1.31, much lower than analysts’ expectations of $1.48.
Hasbro added that Eric Nyman, president and chief operating officer, was also exiting the company as part of organizational changes.
