Coronavirus Update: Our team is here to help our clients and readers navigate these difficult times. Visit our Resources page now »

Skip to Main Content

At a Glance

Uppers

Top corporation in “play” industry

One of Fortune magazine's 100 Best Companies to Work For

Downers

Recent layoffs

Outdated facilities and infrastructure

The Bottom Line

While Hasbro has garnered an exhaustive list of awards and recognition, the company is in need of comprehensive updating.

About Hasbro, Inc.

It's all fun and games at Hasbro, the #2 toy maker in the US (after Mattel) and the producer of such childhood favorites as G.I. Joe, Play-Doh, Mighty Mugs, Transformers, Chomp Squad, and My Little Pony. Hasbro has a significant relationship with Disney, producing merchandise for the entertainment giant's megabrands including Star Wars, Marvel (including Spider-Man, Thor, and Captain America), and Frozen and other Dreamworks features. Besides toys, Hasbro makes board games such as Scrabble, Monopoly, and Trivial Pursuit, as well as trading cards including Magic: The Gathering (through its Wizards of the Coast unit) and Dungeons & Dragons. About 55% of company's total revenue comes from US operations.

Operations

The company operates in three segments: U.S. and Canada (about 50%), International segment (nearly 40% of total sales) and Entertainment, Licensing and Digital (about 10%).

The U.S. and Canada and International segments engage in the marketing and selling of various toy and game products. International segment primarily includes Europe, the Asia Pacific region and Latin and South America. The Entertainment, Licensing and Digital segment conducts our movie, television and digital gaming entertainment operations, including the movie and television operations of Allspark Pictures, Allspark Animation and Boulder Studios and the digital gaming operations of our Wizards of the Coast business.

Hasbro divides its products into four brand categories: Franchise Brands, Partner Brands, Hasbro Gaming, and Emerging Brands.

Franchise Brands are the company's core growth drivers, and consist of seven brands that offer sustained revenue for the long term: Baby Alive, Magic: the Gathering, Monopoly, My Little Pony, Nerf, Play-Doh, and Transformers. Franchise Brands account for about 50% of Hasbro's revenue.

Partner Brands encompasses Hasbro's licensed brands (principally from Disney) for which it makes toys and games. These include Marvel, Star Wars, Disney's Descendants, Dreamworks' Trolls, and Sesame Street. This segment accounts for more than 25% of revenue.

Hasbro's Gaming portfolio counts such well-known board games as Pie Face, Connect 4, Jenga, The Game of Life, Operation, Scrabble, Trivial Pursuit, and Twister. The category also includes trading cards and digital games. Hasbro Gaming generates about 15% of revenue.

Emerging Brands consists of those brands Hasbro believes have the potential to become Franchise Brands but need further development and investment. These include Littlest Pet Shop, Easy-Bake, FurReal Friends, Furby, Playskool, Supersoaker and Power Rangers. It makes up for the remaining revenue (less than 10%).

Geographic Reach

More than 50% of Rhode Island-based Hasbro's total sales are generated in the US and Canada. Europe is its largest international market, accounting for more than 55% of international sales, while Latin America and Asia Pacific made up the rest. The toy maker operates in 35-plus countries across the Americas, Europe, Middle East & Africa, and Asia, and records sales to more than 120 countries. Though almost all of its products are sourced from third-party facilities the Far East (mostly in China).

Sales and Marketing

Hasbro's products are sold through wholesalers, distributors, chain stores, discount stores, drug stores, mail order houses, catalog stores, and department stores, among other traditional retailers, large and small, as well as internet-based "e-retailers." The company's largest customers are Walmart (which accounts for around 20% of sales) Target and Amazon.com (nearly 10% each).

Hasbro markets products via television and digital devices (including Netflix). It also showcases certain new products at the American International Toy Fair, held each February in New York City, as well as international toy shows.

Hasbro's advertising and promotional expenses totalled $413.7 million, $439.9 million, and $501.8 million for the years 2019, 2018, and 2017, respectively.

Financial Performance

After several years of increasing sales, Hasbro's revenue took a dive in 2018 and gained again in 2019. Net income has fluctuated; profits surged in 2015 and 2016 but have jumped almost 14% since 2015.

Sales in 2019 grew 2% to $4.7 billion compared with $4.6 billion in 2018. The increase was due to higher sales across its four brands categories.

Net income jumped by 58% in 2019 to $520 million, compared to $220 million in 2018. Profits were impacted by pension settlement, partially offset by a net benefit and foreign currency gains relayed to hedging portions of the eOne British pound sterling purchase price and other eOne acquisitions related costs.

Cash at the end of fiscal 2019 was $4.5 billion, an increase of $3.4 billion from the prior year. Cash from operations contributed $653.1 million to the coffers, while investing activities used $61.0 million, mainly for items such as machinery, equipment, and software, as well as the acquisition of the Power Rangers brand from Saban. Financing activities contributed another $2.8 billion for dividends to stockholders and the company's stock repurchase program.

Strategy

Hasbro strategic plan is centered on its brand blueprint. Under its brand blueprint strategy, it re-imagine, re-invent and re-ignite its owned and controlled brands and imagine, invent and ignite new brands, through product innovation, immersive entertainment offerings, including television and motion pictures, digital gaming and a broad range of consumer products. As the global consumer landscape, shopping behaviors and the retail environment continue to evolve, Hasbro continue to transform and reimagine its business strategy. This transformation includes reexamining the ways Hasbro organizes across its brand blueprint and re-shaping the Company to become a better equipped and adaptive, digitally-driven organization, including the development of an omni-channel retail presence and adding new capabilities through the on-boarding of new skill sets and talent. More recently, to enhance its long-term competitive position it have identified and pursued key growth opportunities through strategic acquisitions, to excel in today's converged retail environment as a leading global play and entertainment company across all platforms.

The company is using its brands to expand its digital and entertainment offerings. With the purchase of Power Rangers, it has added a new entertainment brand to its portfolio and aims to capitalize on the Power Rangers television series going forward. The company has invested in its Magic: The Gathering brand by introducing an online version of the game through Magic: The Gathering Arena. Hasbro is generating new interest in its Transformers brand with the 2018 debut of Bumblebee, a feature film centered on the Transformers characters. It hopes to leverage the popularity of Transformers to launch future entertainment, gaming, publishing, and merchandise vehicles for the franchise.

Hasbro used Social Media channels such as Facebook, Instagram, and Snapchat to drive brand impressions and established a Content to Commerce studio to create posts on these platforms. It also launched Hasbro Pulse, a new fan-focused site where customers can share product insights and reviews. The site is available in the US with plans for launching in other regions beginning in 2020.

Hasbro is also implementing cost-cutting activities to increase profits such as streamlining staff with a restructuring program. The company has announced that it is reducing sourcing from China from 67% to less than 50% by 2020 and exploring new manufacturing operations in India and Vietnam.

In 2019, the Company made the decision to close its wholly owned subsidiary, Backflip Studios, a mobile game developer and producer of digital applications. The Company plans to continue to support Backflip's existing mobile gaming apps in the near-term.

Mergers and Acquisitions

In late, 2019, Hasbro bought Canadian studio Entertainment One, a film and TV production company which makes "Peppa Pig" and "The Walking Dead, for $4.6 billion. The addition of eOne accelerates its blueprint strategy by expanding its brand portfolio with eOne's beloved global preschool brands, adding proven TV and film expertise, and creating additional opportunities for long-term profitable growth.

In 2019, Hasbro acquired the worldwide toy licensing rights to Sony's Ghostbusters. Now the full franchise is under Hasbro's umbrella, adding to its impressive library of IP that includes Transformers, My Little Pony, Nerf, Monopoly, and most recently Power Rangers, which it acquired earlier this year from Saban Brands.

Company Background

Hasbro traces its roots back to 1923 when Henry and Helal Hassenfeld formed Hassenfeld Brothers in Pawtucket, Rhode Island. Starting out manufacturing pencils and fabric-covered pencil boxes, the company branched into the toy industry during the 1940s by introducing toy nurse and doctor kits. The company's toy division was the first to use TV to promote a toy product—Mr. Potato Head in 1952.

Expansion continued in the mid-1960s with the introduction of the G.I. Joe doll, which quickly became its primary toy line. Hassenfeld Brothers went public in 1968 and changed its name to Hasbro Industries. It bought Romper Room (TV productions) the next year.

In 1980, the toy and pencil divisions split into two companies. The toy division continued to operate under the Hasbro name; the pencil division (Empire Pencil Corporation in Shelbyville, Tennessee became a separate corporation.

Hasbro, Inc.

1027 Newport Ave
Pawtucket, RI 02861-2500
Phone: 1 (401) 431-8697

Firm Stats

Employer Type: Publicly Owned
Stock Symbol: HAS
Stock Exchange: , NASDAQ
EVP and Chief Global Operations and Business Development Officer: Duncan J. Billing
President: Johnathan A. Frascotti
Chairman and CEO: Brian D. Goldner
Employees (This Location): 2,800
Employees (All Locations): 5,600

Major Office Locations

Pawtucket, RI

Other Locations

Burbank, CA
Chino, CA
Exton, PA
Pawtucket, RI
Providence, RI
Allen, TX
Grand Prairie, TX
Newport, Wales
Longueuil, Canada
Oslo, Norway
Khimki, Russia
Malmö, Sweden
Helsinki, Finland

Competitors