How did Hasbro's cost-cutting measures impact its Q4 2024 profitability?

Hasbro's cost-cutting measures had a significant impact on its Q4 2024 profitability, contributing to improved financial results despite a decline in revenue.

1. **Reduced Operating Costs**: Hasbro implemented various cost-cutting measures, such as closing the Providence office, laying off 1,100 employees, and reducing its product lineup. These measures led to a substantial decrease in operating costs, which improved the company's profit margin.
2. **Increased Profit Margin**: The company's profit margin increased to 15.3%, up from 1.8% in the previous year. This indicates that Hasbro's cost-cutting efforts were successful in enhancing profitability.
3. **Improved Cash Flow**: Hasbro's operating cash flow increased to $178 million in Q1 2024, marking an $89-million increase from the same period the previous year. This improvement in cash flow reflects the efficiency of Hasbro's cost management and its ability to generate financial stability.
4. **Stock Performance**: Following the release of Q1 2024 results, Hasbro's stock jumped 12% in early trading, reaching nearly $65 a share. This positive stock performance suggests that investors were responding favorably to the company's cost-cutting measures and improved profitability.

In conclusion, Hasbro's cost-cutting measures had a positive impact on its Q4 2024 profitability, as evidenced by increased profit margins and improved cash flow. These measures have likely contributed to the company's overall financial health and stability.