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The toymaker, however, beat second-quarter revenue estimates, sending its shares up 2.5% in premarket trading.
Hasbro (NASDAQ:HAS) also lowered its growth target for adjusted operating margin to between 20 basis points (bps) and 50 bps, from 50 bps to 70 bps rise forecast earlier.
The company said its margins at its entertainment segment are expected to decline due to industry strikes as well as a $25 million “Dungeons & Dragons: Honor Among Thieves” production asset impairment charge.
Thousands of Hollywood actors voted to strike in July, after talks with studios broke down, joining film and television writers who have been on picket lines since May and deepening the disruption of scores of shows and movies.
The company forecast fiscal 2023 revenue to decline 3% to 6%, compared with its previous outlook of a low-single-digit fall, as entertainment segment revenue is expected to drop between 25% and 30%.
The Monopoly maker’s net revenue fell 10% to $1.21 billion in the quarter ended July 2, compared with analysts’ average estimate of $1.12 billion, according to Refinitiv IBES data.
Separately, the toymaker said it would sell its eOne film and TV studio to Lionsgate Entertainment for about $500 million as part of its efforts to focus on more profitable brands.
