This story was originally published on Manufacturing Dive. To receive daily news and insights, subscribe to our free daily Manufacturing Dive newsletter. Dive Brief: Toy makers Hasbro and Mattel faced challenges from delays in retail orders during the third quarter, but are starting to see early signs of a bounceback for the holiday season. Orders have “accelerated significantly” since the beginning of the month, Mattel CEO Ynon Kreiz said in an earnings call Oct. 21. Prior to that, delays in ordering pa ...

Group 1 - The earnings season has started impressively, with strong performances from major banks and corporate America despite economic uncertainty and tariffs [1][2] - Three early themes have emerged: consumers are resilient against tariff-related cost increases, companies are facing profit pressures due to tariffs, and CFOs are managing earnings expectations effectively [3][2] - General Motors exceeded earnings estimates and raised guidance, citing a resilient consumer and stable auto loan defaults [4] Group 2 - Hasbro reported accelerated sales driven by demand for toys, leading to an increase in full-year sales forecasts [5] - T-Mobile's incoming CEO highlighted better-than-expected customer additions and raised profit guidance [6] - Hilton and AT&T also reported earnings beats and positive outlooks, reflecting consumer resilience [7]

Core Insights - Both companies experienced a soft third quarter due to changing customer buying habits [1] - The outlook for the fourth quarter appears more positive [1] Company Performance - The third quarter results were impacted negatively by shifts in consumer purchasing behavior [1] - Anticipation for improved performance in the fourth quarter suggests potential recovery [1]

Key Takeaways Hasbro's Q3 revenues rose sharply, led by Wizards of the Coast and Digital Gaming momentum.Wizards' revenues jumped 42% to $572M, with Magic: The Gathering up 55% on major collaborations.Hasbro raised 2025 guidance, now expecting high single-digit revenue growth and stronger EBITDA.Hasbro, Inc. (HAS) delivered a strong third-quarter 2025 top-line growth fueled mainly by the Wizards of the Coast and Digital Gaming segment. The business once again outshone, reinforcing its role as a central grow ...

Core Insights - Hasbro reported an 8% increase in quarterly revenue, driven by its Wizards of the Coast and digital gaming segments, despite challenges in its consumer products segment which saw a 7% year-over-year decline due to trade issues and delayed orders [2][3] - The company anticipates a total tariff impact of $60 million for 2025, with $20 million affecting the third quarter, and is restructuring its sourcing to mitigate risks [3] - Hasbro is observing a divergence in consumer spending behavior, with the top 20% of households continuing to spend robustly, while the remaining households are more price-sensitive [4][5] Revenue and Segments - The increase in revenue is attributed to strong performance in the gaming segments, while the consumer products segment faced a decline due to trade challenges and order delays [2] - Approximately half of Hasbro's products are priced below $20 to cater to price-sensitive consumers [4] Consumer Behavior - The company is witnessing a "tale of two consumers," where affluent households are spending more, while others are being cautious with their spending [4] - A significant portion of U.S. consumers, 68%, reported living paycheck to paycheck, indicating a cautious spending environment [6] Competitive Landscape - Rival company Mattel also faced challenges in the third quarter due to shifts in retailer ordering patterns but noted an increase in orders as the holiday season approached [6][7]

Core Insights - Hasbro Inc. reported third-quarter results that exceeded expectations, driven by record performance from its Magic: The Gathering franchise [1] Financial Performance - Adjusted earnings were $1.68 per share, surpassing the consensus estimate of $1.63 [1] - Revenue increased by 8% year-over-year to $1.39 billion, exceeding expectations of $1.35 billion [1] Segment Performance - The Wizards of the Coast segment experienced a 42% revenue increase, with Magic: The Gathering sales jumping by 55% [2] - Growth in the Wizards of the Coast segment was fueled by new releases such as Edge of Eternities and Marvel's Spider-Man, along with strong performance in existing product lines [2] - The Consumer Products division saw a 7% revenue decline due to the timing of U.S. retailer orders related to holiday resets, but there is improving momentum across key brands [3] Profitability - Operating profit rose by 13% to $341 million, attributed to cost control and record gaming revenue [3] - The Wizards of the Coast division achieved a 44% operating margin, indicating high profitability [3] Outlook - Hasbro raised its full-year outlook, now forecasting high-single-digit revenue growth in constant currency and an adjusted operating margin between 22% and 23% [4]

Core Insights - Hasbro reported better-than-expected third-quarter results with total revenue of $1.39 billion, an 8% increase year-over-year, and earnings per share of $1.68, surpassing Wall Street analysts' forecasts [1] Financial Performance - Total revenue for the third quarter reached $1.39 billion, reflecting an 8% increase compared to the previous year [1] - Earnings per share were reported at $1.68, exceeding analyst expectations [1] Retail and Market Trends - Positive signs were noted in October regarding retailers increasing their inventory of toys and games ahead of the holiday season [2] - Disruptions in retail were acknowledged, attributed to factors including the U.S. tariff regime, with expectations of rising retail prices if current tariffs remain [2] Entertainment Strategy - Hasbro has adopted a more "asset-light" approach to its entertainment business following the sale of eOne to Lionsgate, focusing on licensing content to third parties while developing its own family brands [3] - Total entertainment revenue for the third quarter was $61.3 million, with 87% coming from the family category [3] Future Outlook - The entertainment segment is expected to maintain steady revenue with high margins between 50% to 60%, although revenue delivery may vary based on deal timing [4] - Approximately 45 to 50 series and feature film projects based on major Hasbro properties are currently in development, with notable collaborations with major studios like Disney and Netflix [5] Upcoming Projects - Anticipated toy lines for 2026 include Kpop Demon Hunters, with Hasbro and Mattel as co-master toy licensees [6] - Disney's upcoming slate includes major titles such as Toy Story 5, a new Star Wars project, and a new Avengers entry, which are expected to drive interest in related toy lines [6]

Core Insights - The company now expects revenue growth in the high-single digits, an increase from the previous outlook of mid-single digit growth, driven by a pickup in orders from retailers [1] Revenue Outlook - The revised revenue growth expectation is categorized as high-single digits, indicating a more optimistic forecast compared to the earlier mid-single digit growth projection [1] - The increase in revenue expectations is attributed to a rise in orders from retailers, suggesting improved demand in the market [1]

Group 1 - The article does not provide any specific content related to a company or industry [1]

Core Insights - Hasbro is navigating challenges from tariffs and supply chain pressures by selectively raising prices on certain products while aiming to keep half of its offerings under $20 [1][2] - The company reported a revenue increase of 8% year-over-year to $1.39 billion, surpassing Wall Street's expectations, with adjusted earnings per share at $1.68, slightly down from the previous year [2] - Hasbro's stock has risen 36% year-to-date, and the company has raised its full-year sales outlook to high single digits, driven by successful product launches and partnerships with major entertainment franchises [3] Financial Performance - Revenue for the third quarter reached $1.39 billion, exceeding the consensus estimate of $1.35 billion [2] - Adjusted earnings per share were reported at $1.68, down 3% from the previous year but above the expected $1.63 [2] Market Dynamics - The company is experiencing a bifurcation in consumer spending, with high-income households continuing to spend on collectibles and luxury items, while lower and middle-income families are more price-sensitive [4][5] - Hasbro's strategy includes addressing the needs of both consumer segments, with a focus on providing value to budget-conscious families [4] Analyst Sentiment - Analysts remain optimistic about Hasbro's stock, with Jefferies analyst Kylie Cohu reiterating a Buy rating and highlighting strong engagement among adult collectors and demand for products like "Magic: The Gathering" [6]