Hasbro has new blueprint to increase Profit 50% in the next 3 years
 

https://investor.hasbro.com/news-rel...xt-three-years

Investor Day Highlights

Making Strategic Investments to Fuel the Blueprint

Direct to consumer and digital will be a major investment focus for the Company. The Company’s direct platform, anchored by Hasbro Pulse and D&D Beyond, is poised to become a $1 billion digital and ecommerce direct business with over 50 million accounts by 2027, up from 20 million today, and will host new exclusives including the recently launched Hasbro Selfie Series, Has-Lab crowdfunded products, the return of the iconic sports collectible, Starting Lineup, and the relaunch of Avalon Hill’s HeroScape gaming system.
Licensing is set for a major expansion with new and recent partnerships announced with Basic Fun on Littlest Pet Shop and Lego on TRANSFORMERS, and an expanded portfolio of content across Hasbro’s beloved 100-year IP vault.


Entertainment investments are set to more than double for Hasbro IP across the Company’s iconic portfolio of leading Toy and Game brands. The Company announced PEPPA PIG, DUNGEONS & DRAGONS, MAGIC: THE GATHERING, TRANSFORMERS, PLAY-DOH, NERF, and iconic gaming brands like MONOPOLY and CLUE as key focus brands.

The Company is investing in a Brand Insights Platform to enable data-based decisions, deliver superior consumer insights and speed innovation. The platform combines all new technology capabilities, a significant upgrading of its data and analytics team and a network of digital, direct, experiential and partner-based data feeds. This is a multi-year, $100+ million investment that will serve as a major competitive differentiator and empower the Company to create the toys, games and experiences fans want.
Unlocking Brand Value to Drive Innovation and Growth

The Company announced that MAGIC: THE GATHERING, which is on track to become its first billion-dollar brand, has exciting new collaborations with Final Fantasy and Assassin’s Creed and a new blockbuster 30th Anniversary Edition collectible series, inspired by Limited Edition Beta, that lets fans experience cards like the iconic Black Lotus for the first time since 1993, the year the brand launched.
DUNGEONS & DRAGONS will be a major growth priority with a blockbuster feature film, D&D: Honor Among Thieves, a new AAA videogame, Baldur’s Gate III, and a host of new collectibles, toys and games paired with the movie event in 2023.
The Company’s Action Figure portfolio is on pace for a banner year in 2023 behind six blockbuster theatrical releases including Marvel Studios’ Ant Man and the Wasp: Quantumania, Marvel Studios' Guardians of the Galaxy: Vol 3, Sony’s Spider-Man: Across the Spider-Verse and Lucasfilm’s Indiana Jones.

The Company expanded on its major new entertainment lineup for TRANSFORMERS, including a new animated kids show, Transformers: EarthSpark, a new blockbuster film coming in June 2023, Transformers: Rise of the Beasts, and an upcoming CGI feature film in summer 2024.
PEPPA PIG, PLAY-DOH and key collaborations including Marvel’s Spidey and His Amazing Friends and Lucasfilm’s Star Wars: Young Jedi Adventures will anchor planned preschool growth — a $1 billion plus combined growth opportunity.
Expanding the NERF franchise into new categories, the Company also unveiled a first-of-its-kind sports league, NERFBALL, with the first NERFBALL tournament coming in summer 2023.
Capital Allocation Priorities

The Company reviewed its plans to invest in key growth areas to support profitable growth, including in gaming, direct, Hasbro IP content, global insights, talent, supply chain and strategic M&A. Hasbro also plans to continue to de-lever its balance sheet and maintain an investment grade rating. The Company remains on track to return to its 2.0 to 2.5X gross debt to EBITDA target in 2023. Finally, the Company expects to return excess cash to shareholders through its long-standing dividend and a future share repurchase program.

Financial Outlook

During today’s event, Hasbro provided an overview of its long-term outlook with the following 2027 Financial Targets:

Mid-single digit revenue CAGR that sets the Company up to achieve $8.5B or greater in revenue
Operating profit growth of 50% over the next three years, with plans to further expand operating profit margin to 20% by 2027
Operating cash flow of $1B+ annually, accelerating over the period
An operational excellence program of $250-$300M run rate cost savings by 2025
The Company updated its 2022 guidance to include:

Revenue flat to slightly down in constant currency
16% adjusted operating profit margin, excluding restructuring costs and other non-GAAP items (1)
Expect Q3 revenue decline of approximately 15% as reported, and approximately 12% at constant currency with operating profit impacted more significantly due to the mix of revenue being different than last year
(1) The Company is not able to reconcile its forward-looking non-GAAP adjusted operating profit margin measures because the Company cannot predict with certainty the timing and amounts of discrete items such as restructuring and non-cash charges associated with its cost-savings program, which could impact GAAP results.

Disclosures

Today Hasbro also announced an update to brand category reporting beginning in Q1 2023, which will include revenue and operating profit. Highlights include:

Refreshed list of Franchise Brands to meet updated priorities for profitable growth: MAGIC: THE GATHERING, DUNGEONS & DRAGONS, Hasbro Gaming, NERF, PLAY-DOH, PEPPA PIG and TRANSFORMERS.
Partner Brands remain as reported previously, reflecting the long-term and deep partnerships with amazing IP owners, including The Walt Disney Company for Marvel, Star Wars and beginning next year Indiana Jones.
Portfolio Brands include all remaining brands.
As Hasbro continues to invest and grow its over $2 billion dollar gaming business, the Company intends to continue to disclose revenue for the full gaming portfolio and will add operating profit. The Company also intends to begin reporting revenue associated with any brand that is $1 billion or greater, beginning with MAGIC: THE GATHERING, which is on track to become its first $1 billion brand.

(guess more price increases in the future?)

Yah, pretty sure their big idea is just to charge up the wazoo for Legends figures while calling them deluxe.

ya Legends will be up to 35- 40 bucks in the next 3 years if Hasbro has their way

^ I wonder if the new pinless molds with butterfly joints are enough of an incentive to get people to rebuy the same character one more time. I mean like the new Daredevil and Cyclops... for me it is not... especially if they stick that new upgraded figure in a 2 pack or 3 pack. I am pretty much in just finish off my current teams mode then I am probably out... so any further price increases down the line won't affect me too much I don't think.

Hasblow can suck my dookies at this point. Besides the occasional X-Men fig, I'm out. Time to increase my McFarlane and Figuarts collection.

Collectors are giving Hasbro shit over that profit tweet and calling them out on their BS and I am here for it on twitter.

Personally I've never lost any sleep over my figures having pins, so they can release whoever they want again and again but I'm not biting.

Depends on the character. While I don't find the pins to be that big of a deal, for $25+, every Hasbro toy should be pinless. I should not be spending today's prices for yesterday's body molds.

Although, I will say that the female figures are vastly superior with the pinless joints as their legs are no longer gummy and deformed looking.

You do realize Bandai has been upping the price of Figuarts as well on top of cutting back on accessories, right? Not to mention having piss poor quality control, especially on recent figures that have had rubber pieces. I'm still pissed I spent $70 on a Kamen Rider Black figure that was pre-broken.

Yes I do realize their products are miles above Hascrap's. I ordered almost a dozen of their products this year and none of them disappointed. You want to talk about QC? Hasbad is the king of terrible QC. Especially now that they can hide them in cardboard boxes.

Maybe "Hasbro"...
Will do a...
"coupon day" for there...

"Loyal" customers or something...

Do Something "HASBRO"!!!!
People are losing...
"Toy Minds" out here ;^)

"Has-bro" can you help a brother out??? ;^)

Do you feel embarrassed when you write that stuff, or do people need to keep cringing on your behalf?

Thank you for completely missing the point.

No I got the point. You were trying to trash the entire line on one figure you disliked. It's very easy to do that with Hasblow. Actually it's funny you mentioned Figuart's accessories since I collect X-Men lines. AOA Cyclops: bad mold, 0 accessories. AOA Jean Grey: 0 accessories. AOA Wild Child: 0 accessories. Juggernaut BAF line: Iceman, Jean Grey, and Rogue = 0 accessories. Warlock BAF line: Old Man Logan, Cyclops (again) 0 accessories. Bonebreaker BAF: the ugly Sabretooth has guess what? 0 accessories! Oh and the price is raised to $25 for that trash. How nice. I don't need to go into other BAF's lack of accessories do I?

Not at all. The more you cringe the better. Please cringe more.

Hasbros model is keep raising prices. Theyre getting as bad as fucking opec.

Actually, I wasn't trying to trash the entire line. However, it isn't just one figure. Shadow Moon, Ultraman Tiga, and Golza also suffer this same issue.

I love the Figuarts line, but they have priced me out with how lackluster things have gotten in the last several years. The quality is less than what it was when they were half the price, the accessory count has diminished, and their character selection sucks. They don't even give the main rider forms all of their base weapons anymore. They also can't be trusted with completing an entire team because fucking ADHD kicks in so they just cancel a team halfway through.

$25 is at least far better a cost than $80.

It sucks that you can't complete the sets but that's how it goes sometimes with toy companies. I have Figuarts that I dislike as well that's why I have to pick and choose. The recent Dragon Ball Super figures have a few bad figs like the Vegeta but I can choose to only order the Gohan. The regular Krillin is great too and I got both for under $40. Much better than buying a ML. I'd rather not be forced to get 3-4 figures that I don't want in order to complete a BAF regardless of the price.

It's something you can't win. Either buy the extra figures to complete the BAF character, or collect the Japanese lines where they may not make that character at all in the first place.

Oops... wrong thread.

The Dragonball Figuarts got out of control to the point where I just quit because I couldn't keep up with them and it started to become if you didn't preorder a figure, you were paying 3-4 times as much on ebay just to play catch up.

In good news

Don't know if this will get Hasbro to lower prices in the future but no shit sherlock CEO nobody likes price increases

https://www.cnbc.com/2022/10/18/hasb...-earnings.html

I don't think Black Panther 2 figs are gonna sell that well either... Hasbro has had so many underwhelming waves in a row... if it weren't for Spidey I think Legends would be in trouble by now. IMO the Controller wave is the first decent Legends wave in a while.

I agree. Hell, the BP figures warmed pegs the first time around. Why would they be more in demand now?

However, the comic version BP is really nice. I found one at WM (on Rollback for some inexplicable reason) for $19.99.

I can never tell where you stand Raine..

You be you!

They just reported a 5 year low and blame it on the consumers not able to deal with the cost increase.