01:31 PM EST, 02/20/2025 (MT Newswires) -- Hasbro ( HAS ) on Thursday reported a surprise increase in fourth-quarter profit and outlined a medium-term strategy, including targeting $1 billion of cost savings.

The toymaker's adjusted earnings rose to $0.46 a share for the quarter through Dec. 29 from $0.38 a year earlier, while revenue decreased 15% to $1.10 billion. Analysts polled by FactSet expected $0.34 and $1.03 billion, respectively. Sales at the Wizards of the Coast and Digital Gaming segment declined 7%, while consumer products saw a 1% drop.

"Discounting was down for the quarter across the business," Chief Executive Chris Cocks said on an earnings conference call, according to a FactSet transcript. "In fact, when factoring in a significant reduction year-over-year in inventory clearance, our mainline toy sales grew in the quarter, indicating momentum as we enter 2025."

The company's shares were up nearly 13% in Thursday afternoon trade. The stock has surged 24% so far this year.

Under its newly outlined "Playing to Win" strategic plan, Hasbro ( HAS ) projects $1 billion of cost savings by 2027 and a mid-single-digit compound annual growth rate for constant currency revenue.

"Playing to Win marks an important pivot for the company, a return to growth," Cocks said on the call. The company expects "modest" revenue growth this year, along with continued margin expansion, he added. Its fiscal 2024 revenue declined 17% year over year.

Separately, Hasbro ( HAS ) and Mattel ( MAT ) announced a new PLAY-DOH Barbie collection under a new licensing collaboration between the companies. Hasbro ( HAS ) will sell the doll line, launching in Target ( TGT ) stores and online in June. It will be available at most retailers in August, Hasbro ( HAS ) and Mattel ( MAT ) said.

Hasbro ( HAS ) and Sabre Interactive will collaborate on a new video game partnership that Cocks said is "sure to be a hit." Over the next three years, Hasbro ( HAS ) expects its brands across digital games, location-based entertainment, and toys and merchandising partners to see more than $4 billion in incremental partner-led investments, Cocks told analysts.

"Our upcoming collaborations span blockbuster movies, themed hotels, cruise ships, quick-service restaurants, category-expanding toy partnerships and, of course, AAA video games," he said on the call.

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