
Hasbro have unveiled a new strategic plan, ‘Playing to Win’, taking the company through 2027, with a mission to create joy and community through the magic of play; but what does that mean for Star Wars.
With sales declining by 12% in 2024, revenue also fell by 17% for the full year, mostly due to the sale of eOne, but even taking that into account, revenue was down by 7%, although profitability was up. We know from their earnings call, that Star Wars sales have declined and they don’t expect to see growth in 2025. There is expectation that sales will improve with the release of The Mandalorian & Grogu in May 2026, followed by the 50th anniversary of Star Wars in 2027, but the writing may be on the wall if there’s not significant growth, especially with the new management in place who are hoping for a better return for their shareholders. We’ll be watching closely.
Here’s the full ‘Playing to Win’ press release…
Hasbro, a leading games, IP, and toy company, is unveiling a new strategic plan, ‘Playing to Win’, taking the company through 2027. At the heart of Playing to Win is Hasbro’s mission to create joy and community through the magic of play. Through play-fueled engagement and partner-scaled co-investment, Hasbro will seek to expand its reach from over 500 million kids, families, and fans today to over 750 million by 2027. Through 2027, we expect an average of mid-single digit revenue growth and 50-100 basis points of annual operating profit margin improvement. By 2026 Hasbro’s gross debt to adjusted EBITDA ratio is projected to stand at 2.5x. And by 2027 Hasbro’s operational excellence program is expected to deliver $1bn of gross cost savings, with approximately half dropping to the bottom line.
Medium-Term Guidance (2025-2027)
Key Metric
Measure
Revenue (Constant Currency)
Mid-Single Digit Growth CAGR
Adjusted Operating Margin
50bps to 100bps Average Expansion per year
Cost Savings*
$1B Gross Cost Savings
Capital Allocation
2.5x Gross Debt to Adjusted EBITDA by 2026
*Cost Savings are calculated using FY 2021 results as base year.
The Company is not able to reconcile its forward-looking non-GAAP adjusted operating profit margin because the Company cannot predict with certainty the timing and amounts of discrete items such as charges associated with its cost-savings program, which could impact GAAP results. Constant currency is a non-GAAP financial measure.
Chris Cocks, Hasbro’s CEO, said: “Play is a universal human need and a strong basis for a business that has the purpose to endure, as Hasbro has proved over the last 164 years. Playing to Win unlocks Hasbro’s strengths: a broad and deep brand portfolio rooted in play, an unmatched licensing business, and a profitable games business anchored by world-renowned franchises fans love like Magic: The Gathering, Monopoly, and Dungeons & Dragons. Our new strategy is grounded in the key insights which will drive Hasbro’s evolution into a modern play company: serving fans of all ages around the world at every price point, and meeting fans where they are playing, which is increasingly online.”
Gina Goetter, Hasbro’s CFO and COO, said: “Playing to Win focuses our teams on Hasbro’s core strengths while continuing to transform the organization and drive operational excellence. With this strategy, we expect to emerge as one of the most profitable toy and game companies globally, powered by a phenomenal set of diverse and multi-generational franchises.”
Playing to Win marks an important pivot for Hasbro: a return to growth. The strategy focuses Hasbro on what has always made the company great – Play and Partners. Play is the foundation for an incredible portfolio of brands, a library of thousands of marks spanning Hasbro’s 164-year history across ages, geographies and play patterns. Through partners, Hasbro has scaled to become the third largest entertainment licensor on the planet and the biggest in digital games, by far the fastest growing entertainment category of the last decade.
A focus on Play and Partnership has allowed Hasbro to exit non-core businesses like eOne film and TV and take out $600M of costs. Hasbro has emerged with a stronger balance sheet and a stellar line-up of partners. This focus has allowed the company to lean into high profit, high growth areas like digital games where Hasbro’s brands have proven resonance and diversified digital revenue streams allow for self-funding. And upcoming partner collaborations span blockbuster movies, themed hotels, cruise ships, quick service restaurants, category expanding toy partnerships and AAA videogames.
Playing to Win includes five strategic building blocks:
• Profitable Franchises: Asserting the fundamentals of profitable, play-focused brands.
• Aging Up: Increasing the play and collectible appeal for fans aged 13 and above across Hasbro’s brands.
• Everyone Plays: Expanding reach in opportunity areas including girls and emerging markets.
• Digital & Direct: Building video games, services, and e-commerce capabilities.
• Partner Scaled: Driving profitable reach through outstanding retail and licensing partnerships.Hasbro is introducing a new prioritization matrix to assess brands, markets and channels that will drive internal clarity and resource allocation. Growth Brands and channels with the highest growth and margin potential will receive higher incremental investment, including Magic and Play-Doh, emerging markets, and Hasbro’s self-published video game efforts. Opportunities with a lower growth or margin profile will see more targeted investments to grow share and optimize profitability.
Underlying these product and brand-focused strategies are a series of transformation initiatives to upgrade the company’s operations, systems, and talent. These initiatives include systems modernization, supply chain excellence, design acceleration, and AI and digital advancement. To deliver the future of play, Hasbro will build on the culture of innovation and collaboration fostered over the past 164 years while creating a positive impact on the community and the environment.
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