Shares of Hasbro fell after the toymaker forecast slower sales for the holiday season.
The Pawtucket, R.I.-based company's stock fell 5% to $66.75 in Thursday morning trading. Shares are up 21% year over year.
Hasbro's consumer products segment now expects a 12% to 14% revenue decline year over year, citing lower closeout volume and softness in brands such as Star Wars and Nerf. Hasbro raised its outlook for its Wizards and digital gaming segment slightly, and now expects up to a 1% decline.
The fourth quarter will see a more pronounced year-over-year decline driven by the timing of certain "Magic: The Gathering" releases, Chief Executive Chris Cocks said on the company's earnings call.
Despite holiday shopping, Cocks said he expects the toy industry will be down modestly in the fourth quarter, adding that royalty expenses tend to pick up in that period. Cocks said he expects three major "Magic" launches to boost top-line growth in 2025.
"The future of 'Magic' looks pretty bright," he said. "And when 'Magic' is healthy, Hasbro tends to be healthy."
Hasbro reported revenue of $1.28 billion in the third quarter, a 15% decline year over year.