Hasbro has always been synonymous with the toys that define childhood. But in its second century in business, the maker of Mr. Potato Head, G.I. Joe, and My Little Pony is diversifying away from toys—and away from its longtime target demographic of children.
CEO Chris Cocks, appointed in 2022, is refashioning the company into one that gets most of its sales from card games and bets heavily on demand from grown-ups, or—as Cocks calls them—“kidults.”
Cocks’ strategy is helping reinvigorate Hasbro after a period of sales declines that coincided with an industry-wide slump and a product pipeline that had grown stale. Hasbro on Tuesday reported a 16% increase in revenue to $1.14 billion, topping analysts’ expectations of $1.07 billion, sending shares up sharply; they are up 9% for the year.
A major contributor to those stellar results was the runaway success of the 33-year-old “Magic: The Gathering” card game business, which got a boost from its collaboration with Marvel Super Hero collectibles. Hasbro has reinvigorated Magic in recent years through aggressive digital integration and by making it easier for large groups of people to play together. That business grew 32% year-over-year to pass the quarterly $500 million mark for the first time. And Cocks sees a lot more upside.
