HA

Hasbro, Inc. stock research

Dec 29, 2024

FY2024 Q4

Hasbro (HAS) Gross Margin — Quarter Ended Dec 29, 2024

Revenue decreased from the prior quarter, resulting in a lower gross profit despite a reduction in cost of revenue, causing gross margin to weaken. Compared to the same quarter a year ago, revenue was lower but gross profit improved sharply as cost of revenue declined substantially, leading to a significantly stronger gross margin.

Gross margin takeaway

Quarter ended Dec 29, 2024 · FY2024 Q4

Revenue decreased from the prior quarter, resulting in a lower gross profit despite a reduction in cost of revenue, causing gross margin to weaken. Compared to the same quarter a year ago, revenue was lower but gross profit improved sharply as cost of revenue declined substantially, leading to a significantly stronger gross margin.

  • The gross margin strengthened compared to a year ago, driven by a proportionally larger decline in cost of revenue relative to the drop in revenue. Against the prior quarter, margin weakened as cost of revenue did not fall enough to offset the revenue decline.
  • Sequentially, gross margin declined from the immediately preceding quarter. Year-over-year, gross margin improved compared to the same quarter one year earlier.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

67.4%

Gross profit

$742.9M

Revenue

$1.1B

Cost of revenue

$358.7M

Quarter-over-quarter change

-3.0 pts

Year-over-year change

+12.0 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2024$757.3M$553.1M$204.2M73.0%
Jun 30, 2024$995.3M$757.6M$237.7M76.1%
Sep 29, 2024$1.3B$902.4M$378.9M70.4%
Dec 29, 2024$1.1B$742.9M$358.7M67.4%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Sep 29, 2024

-3.0 pts

Year-over-year change

Dec 31, 2023

+12.0 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The gross margin strengthened compared to a year ago, driven by a proportionally larger decline in cost of revenue relative to the drop in revenue. Against the prior quarter, margin weakened as cost of revenue did not fall enough to offset the revenue decline.

Sequentially, gross margin declined from the immediately preceding quarter. Year-over-year, gross margin improved compared to the same quarter one year earlier.

Monitor the trend in cost of revenue relative to revenue, as its movement was the primary observable factor behind the margin changes.