Hasbro warns of weak third quarter while slashing full-year forecast

Toymaker Hasbro cut its full-year revenue forecast after warning of a weaker third quarter, but remained positive on the longer-term outlook.

Video transcript

SEANA SMITH: All right, my play today is Hasbro. The company is slashing its outlook for the current year, but remaining upbeat in its long-term projections. Hasbro warning of a weaker third quarter revenue outlook, cutting its full year revenue forecast at its investor day today, but projecting sales to be flat to slightly down for 2022.

For the long-term, though, a bit of a different tune. Management remaining positive as CEO Chris Cocks announced Blueprint 2.0, laying out a growth plan that includes a larger emphasis on gaming and licensing shares-- on gaming and licensing, excuse me.

Shares fell as much as 6% in earlier trading, although you can see it now back in positive territory, up just around 1%. Dave, it will be interesting to see where this company goes. Obviously, the next couple of months will likely be a bit of a struggle for them as consumers pull back, but they're pretty positive, looking further ahead.

DAVE BRIGGS: Licensing including Wakanda Forever, which we expect to be a major hit, and they expect to see some significant sales off of. But also, part of that plan was $250 to $300 million in cost cutting without really identifying where those cuts are coming from and not mentioning any layoffs in that release either, although transferring a lot of employees to more hybrid work. But that ain't going to get you anywhere near 250 to 300 million, so it'll be interesting to see where that comes from. And Wordle, their board game, coming out. I don't know. Will you play?

SEANA SMITH: I love Wordle. I don't have--

DAVE BRIGGS: You play every day?

SEANA SMITH: I don't play every day. I used to play every day. I actually kind of forgot about it. So thank you for reminding me. I really like it. But I think that could be a huge hit for them.

DAVE BRIGGS: "Dungeons and Dragons" still a big hit for them.