Yahoo Finance Executive Editor Brian Sozzi sits down with Hasbro (HAS) CEO Chris Cocks at the Goldman Sachs Communacopia and Technology Conference to discuss the toy company's older customer base, its expansion into gaming, and the state of the industry ahead of the 2024 holiday shopping rush.
"I think we're a toy company in the most general sense that we're in the industry of play, and we make physical things as well as digital things. But I'd like to think that we're helping to redefine what a toy company can be. You know, to me, a toy company of the future is aged up, it's digital, and it's heavily partner-based. And I think that's been key to each of our turnaround notes," Cocks says.
Cocks notes that customers 13 years old and above make up 60% of Hasbro's sales, which makes the toymaker stand out against its competitors.
He attributes the success of this older base to three themes, the first being the fact that "everyone plays." He adds that the rise of digital — the second theme — "powers a lifelong relationship with play." Finally, Cocks emphasizes that partnerships are crucial, and by working with beloved brands like Disney (DIS), Takara Tomy, and Scopely, Hasbro can continue to drive play.
Gaming has proven to be a major success for Hasbro, as the company has experienced significant growth from its Monopoly Go! mobile game. Hasbro has another 10 games in development for PC and console, and more than 100 games in the pipeline for mobile through partnerships. Cocks explains that partnerships are key: "It's all about having multiple business models to defray risk."
As families start saving for their big holiday gifts, Cocks argues that "the toy industry is returning to its traditional role as a resilient category that retailers can rely on." He expects Hasbro's toy business to be up in the fourth quarter despite struggling with low inventory in its most recent quarter.
"We've made a lot of moves to make sure that doesn't happen ever again. We had too much inventory coming in 2022 out of the pandemic. And so we've right-sized that... So not only is our inventory down, the cost of our products are way down as well," he adds.
Catch more Yahoo Finance coverage and interviews from the 2024 Goldman Sachs Communacopia & Technology Conference, including Brian Sozzi's full interview with Mattel (MAT) Chair and CEO Ynon Kreiz.
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This post was written by Melanie Riehl