Hasbro CEO Chris Cocks: Why Wizards of the Coast and digital gaming is exploding

Core Insights - Hasbro is experiencing significant growth in its digital gaming business, particularly with franchises like Dungeons & Dragons and Magic the Gathering, which are fostering community engagement [1][2] - The company's shares rose by 8% following strong fourth-quarter profit results and positive guidance for 2026 [2] - Hasbro's Wizards of the Coast division saw an 86% increase in sales year-over-year, with improved operating margins [3] Financial Performance - The company has implemented aggressive cost-cutting measures and is benefiting from strong sales momentum in its digital gaming segment [3] - Hasbro's outlook indicates continued top-line growth and expansion of operating margins in the coming years [3][4] - Jefferies analyst Kylie Cohu raised Hasbro's price target by 24% to $120, reflecting confidence in the company's performance [5] Industry Trends - The toy industry has faced a decline of low single-digit percentages annually over the past three years, but signs indicate stabilization and potential flat growth in the near future [6] - Hasbro is expected to leverage a strong innovation portfolio and upcoming toy releases tied to major Disney films, such as Toy Story 5, to drive future growth [3][4]