Despite recent news that US toy sales experienced an uptick in December 2012, preliminary financial reports from Hasbro show that the company’s fourth quarter revenues came in below expectations.
The second-largest toy manufacturer in the US saw less-than-expected consumer demand over the holiday season in both the US and in international markets. As such, Q4 revenues were roughly US$1.28 billion, compared to US$1.33 billion the previous year.
Hasbro full-year 2012 revenues are expected to be approximately US$4.09 billion, representing a 2% drop from 2011′s US$4.29 billion. However, the company says that sales grew within its Games and Girls categories in 2012, as well as within its emerging markets business.
During Q4 2012, the company established a plan to deliver US$100 million of annual cost savings by 2015 that is expected to derive from, among other things, a 10% reduction in workforce. More details surrounding the cost-saving initiatives, as well as fourth quarter and full-year financial results, will be announced on February 7.