Retailers have pushed back holiday orders because of tariffs, and that may complicate replenishment, Hasbro says. https://t.co/CWILrjxQy7 ...

Core Insights - Hasbro attributes its ability to mitigate the impact of tariffs this quarter to its successful strategies, particularly in its Wizards of the Coast division, which includes Magic the Gathering, showing a 23% revenue increase [2][3] Financial Performance - Overall revenues for Hasbro decreased by 1%, with growth in the Wizards and digital gaming divisions nearly offsetting a decline in consumer products due to tariffs [2] - The company anticipates a gross impact from tariffs ranging between $100 million to $300 million in 2025 [4] Strategic Responses - CEO Chris Cocks mentioned that the company is addressing tariff-related costs through cost reductions, rebalancing marketing expenditures, diversifying suppliers, and implementing targeted pricing actions [3] - CFO Gina Goetter noted that trade uncertainties are causing retailers to delay holiday inventory builds, which negatively impacted Q2 consumer products revenue [4] Consumer Sentiment and Market Trends - The company is cautiously optimistic about its toy and general merchandise business, as consumer sentiment appears to be improving [5] - Research indicates that nearly half of U.S. consumers have faced product shortages, with 58% of those living paycheck to paycheck affected [6] - Approximately one-third of consumers have been informed that tariffs are causing higher prices, with a quarter of consumers noting increased costs without specific mention of tariffs [7]

Core Insights - Hasbro Inc reported a notable second-quarter earnings and revenue beat, raising its revenue outlook and indicating a lower-than-expected long-term impact from tariffs [1] - Despite a 2.7% decline to $75.49, Hasbro's stock has shown significant improvement since its annual low of $49.00 on April 9, reflecting a 33% year-to-date gain [2] - The stock's pullback has found support at the $75 level, following a multi-year peak of $78.83 on July 1 [2] Options Trading Activity - Options traders have shown a bullish sentiment, with a 10-day call/put volume ratio of 6.47, ranking higher than 84% of readings from the past year [3] - Short-term traders also exhibit a call-bias, as indicated by a Schaeffer's put/call open interest ratio (SOIR) of 0.40, which is in the 5th percentile of readings from the past 12 months [3] Volatility Performance - Hasbro's stock has historically outperformed volatility expectations, as evidenced by a Schaeffer's Volatility Scorecard (SVS) of 95 out of 100 [4]

Core Insights - Hasbro, Inc. reported second-quarter fiscal 2025 results with earnings and revenues exceeding the Zacks Consensus Estimate, although the top line declined year over year due to weaker contributions from the Consumer Products and Entertainment segments [1][3][7] Financial Performance - Adjusted earnings per share (EPS) for Q2 fiscal 2025 were $1.3, surpassing the Zacks Consensus Estimate of 78 cents, and up from $1.22 in the same quarter last year [3][7] - Net revenues reached $980.8 million, beating the consensus mark of $877.3 million, but reflecting a 1% decline from $995.3 million reported in the prior-year period [3][7] Segment Performance - Consumer Products segment revenues decreased 16% year over year to $442.4 million, although this figure exceeded expectations, supported by strong licensing revenues [4] - The Wizards of the Coast and Digital Gaming segment saw revenues increase by 16% to $522.4 million, while the adjusted operating margin was 46.3%, down from 54.7% in the previous year [5] - The Entertainment segment's revenues fell 15% year over year to $16 million, with an adjusted operating margin of 63.1%, down from 94.1% in the prior-year quarter [5] Cost and Efficiency - Cost of sales as a percentage of net revenues was 23%, slightly improved from 23.9% in the year-earlier quarter [6] - Selling, distribution, and administration expenses were reduced to $282.8 million from $318.5 million reported in the prior-year quarter [6] - Adjusted EBITDA for the quarter was $302 million, compared to $313.5 million a year ago, exceeding the estimate of $231.5 million [6] Outlook - Hasbro raised its full-year revenue and adjusted EBITDA guidance, now expecting total revenues to increase in mid-single digits on a constant currency basis, up from a previous expectation of slight growth [2][9] - Adjusted operating margin is now anticipated to be between 22% and 23%, compared to the earlier forecast of 21-22% [9] - Adjusted EBITDA is expected to range from $1.17 billion to $1.2 billion, an increase from the prior expectation of $1.1 billion to $1.15 billion [9] Balance Sheet - As of June 29, 2025, cash and cash equivalents were $546.9 million, down from $626.8 million as of June 30, 2024 [8] - Inventories totaled $417.1 million compared to $357.6 million a year ago [8] - Long-term debt decreased to $3.32 billion from $3.46 billion as of June 30, 2024 [8]

Core Insights - Hasbro reported revenue of $980.8 million for the quarter ended June 2025, reflecting a year-over-year decline of 1.5% but an EPS of $1.30, up from $1.22 a year ago, indicating a positive earnings surprise of +66.67% compared to the consensus estimate of $0.78 [1][2] Revenue Performance - External Net Revenues from Entertainment were $16 million, below the average estimate of $19.18 million, representing a year-over-year decline of -14.9% [4] - External Net Revenues from Consumer Products reached $442.4 million, exceeding the average estimate of $413.93 million, but still showing a decline of -15.7% year-over-year [4] - External Net Revenues from Wizards of the Coast and Digital Gaming were $522.4 million, surpassing the estimated $459.57 million, with a year-over-year increase of +15.6% [4] Segment Analysis - Within Wizards of the Coast and Digital Gaming, Tabletop Gaming generated $406.3 million, exceeding the average estimate of $337.95 million, marking a year-over-year increase of +32.1% [4] - Digital and Licensed Gaming revenues were $116.1 million, below the average estimate of $124.14 million, reflecting a year-over-year decline of -19.6% [4] - Operating profit for Wizards of the Coast and Digital Gaming was $241.8 million, significantly above the average estimate of $185.99 million [4] - The Corporate & Other segment reported an operating loss of $-16.7 million, better than the average estimate of $-37.23 million [4] - The Entertainment segment achieved an operating profit of $6.3 million, exceeding the estimated $0.91 million [4] Stock Performance - Hasbro's shares have returned +6.9% over the past month, outperforming the Zacks S&P 500 composite's +5.9% change, with a current Zacks Rank of 3 (Hold) indicating potential performance in line with the broader market [3]

Financial Data and Key Metrics Changes - Net revenue for Q2 2025 was $981 million, essentially flat year over year, driven by the strength of the Magic segment [18] - Adjusted operating profit was $247 million with an adjusted operating margin of 25.2%, up 20 basis points from the previous year [18] - Adjusted earnings per diluted share rose to $1.30, a 7% increase year over year [19] Business Line Data and Key Metrics Changes - Wizards of the Coast and digital gaming segment revenue grew 16% to $522 million, led by The Gathering, which delivered 23% growth [19] - Consumer products revenue declined 16% to $442 million, primarily due to retailer order timing and market softness in select geographies [20] - Entertainment segment revenue was $16 million, in line with expectations, contributing $10 million in adjusted operating profit [21] Market Data and Key Metrics Changes - The organized play segment saw a nearly 40% year-over-year increase in unique players during the first half of 2025 [11] - EMEA and APAC regions are performing well, with expectations for growth in both regions by year-end [14] - The U.S. toy and game volume is currently 50% sourced from China, with plans to reduce this to less than 40% by 2027 [26] Company Strategy and Development Direction - The company is focused on its "Playing to Win" strategic plan, emphasizing premium, high-margin segments like Wizards, licensing, and digital [7] - A new exclusive publishing agreement for a Dungeons and Dragons game reflects the company's commitment to investing in top-tier talent and expanding digital engagement [13] - The company is diversifying its supply chain and implementing targeted pricing actions to mitigate tariff impacts [15][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to growth in 2025, supported by record operating margins and strong performance in the Magic segment [17] - The current tariff situation is better than previously anticipated, with an estimated impact of $60 million on the 2025 P&L [24] - The company raised its full-year guidance for revenue, margin, and adjusted EBITDA, reflecting strong performance and improved visibility [27] Other Important Information - A non-cash goodwill impairment charge of $1 billion was recorded in the consumer products segment due to tariff impacts [25] - The company is on track to achieve $175 million to $225 million in gross cost savings for the year [28] - The capital allocation priorities include investing in high-return growth drivers, debt reduction, and returning cash to shareholders via dividends [29] Q&A Session Summary Question: Can you elaborate on the demand for Final Fantasy and how it compared to expectations? - Management noted that Final Fantasy exceeded expectations, achieving $200 million in revenue within one day, significantly outpacing previous releases [35][36] Question: How do you view the midterm outlook and potential for operating margin expansion? - Management reaffirmed the midterm outlook, indicating that while this year is over-delivering, they still see a path to their growth profile despite potential headwinds [50][53] Question: What are the expectations for Monopoly Go and its recent performance? - Management highlighted that user metrics for Monopoly Go continue to exceed benchmarks, with revenue contributions likely to be higher than previously estimated [56][58] Question: How is the company addressing the impact of tariffs on pricing and inventory? - Management indicated that while tariffs have not yet significantly impacted consumer takeaway, they expect gradual price increases and are managing inventory levels cautiously [106][110] Question: What is the company's strategy for expanding the Magic player demographic? - Management emphasized the importance of new IPs and collaborations to attract younger players and increase female representation in the player base [99][100]

Financial Data and Key Metrics Changes - Net revenue for Q2 2025 was $981 million, essentially flat year over year, driven by the strength of the Magic segment [19] - Adjusted operating profit was $247 million with an adjusted operating margin of 25.2%, up 20 basis points from the previous year [19] - Adjusted earnings per diluted share rose to $1.30, a 7% increase year over year, attributed to favorable mix and margin discipline [20] Business Line Data and Key Metrics Changes - Wizards of the Coast and digital gaming segment revenue grew 16% to $522 million, led by The Gathering, which delivered 23% growth [20] - Consumer products revenue declined 16% to $442 million, primarily due to retailer order timing and market softness in select geographies [21] - Entertainment segment revenue was $16 million, in line with expectations, contributing $10 million in adjusted operating profit [22] Market Data and Key Metrics Changes - North America saw a decline in consumer products sales, while EMEA and APAC regions performed well and are expected to end the year in growth mode [14] - The organized play segment saw a nearly 40% year-over-year increase in unique players during the first half of 2025, indicating strong community engagement [11] Company Strategy and Development Direction - The company is focused on its "Playing to Win" strategic plan, emphasizing premium, high-margin segments like Wizards, licensing, and digital [6] - A new exclusive publishing agreement for a Dungeons and Dragons action-adventure game was announced, reflecting the company's commitment to investing in top-tier talent and expanding digital engagement [13] - The company is diversifying its supply chain to reduce reliance on China, aiming to bring that exposure down to less than 40% by 2027 [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to growth in 2025, backed by record operating margins and strong performance across diversified portfolios, especially in the Magic segment [18] - The company raised its full-year guidance for revenue, margin, and adjusted EBITDA, reflecting continued strength in the Wizards business and improved visibility into the back half of the year [28] - Management acknowledged the impact of tariffs but noted that the current rates are more favorable than previously anticipated, leading to a lower expected expense in 2025 [24] Other Important Information - A non-cash goodwill impairment charge of $1 billion was recorded in the consumer products segment due to the impact of tariffs and trade uncertainty [25] - The company is on track to achieve $175 million to $225 million in gross cost savings this year, prioritizing investments in core growth engines while maintaining financial flexibility [29] Q&A Session Summary Question: Can you discuss the demand for Final Fantasy and how it compared to expectations? - Management noted that Final Fantasy exceeded expectations, achieving $200 million in revenue within one day, significantly faster than previous major releases [36][38] Question: How do you view the midterm outlook and potential for operating margin expansion? - Management reaffirmed the midterm outlook, indicating that while this year is outperforming expectations, they still see a path to growth despite potential headwinds [52][54] Question: What is the health of the Magic player base and the impact of Universes Beyond sets? - The unique player base in organized play increased by 40% year over year, with Universes Beyond sets effectively bringing in new players [123]

Financial Performance - Hasbro reported quarterly earnings of $1.3 per share, exceeding the Zacks Consensus Estimate of $0.78 per share, and up from $1.22 per share a year ago, representing an earnings surprise of +66.67% [1] - The company posted revenues of $980.8 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 10.43%, although this is a decrease from year-ago revenues of $995.3 million [2] Stock Performance - Hasbro shares have increased approximately 38.7% since the beginning of the year, significantly outperforming the S&P 500's gain of 7.3% [3] - The current Zacks Rank for Hasbro is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.63 on revenues of $1.27 billion, and for the current fiscal year, it is $4.30 on revenues of $4.23 billion [7] - The outlook for the Toys - Games - Hobbies industry is currently weak, ranking in the bottom 7% of over 250 Zacks industries, which could impact Hasbro's stock performance [8]

Q2 2025 Financial Performance - Hasbro's total revenue decreased by 1% to $981 million in Q2 2025, with growth in Wizards of the Coast & Digital Gaming offset by declines in Consumer Products [7] - Wizards of the Coast & Digital Gaming segment revenue increased by 16% to $522 million, driven by MAGIC: THE GATHERING and Monopoly Go! [6, 13] - Consumer Products segment revenue declined by 16% to $442 million, despite growth in consumer products licensing [6, 13] - Hasbro reported a net loss of $856 million, or $6.10 per share, impacted by a $1022 million non-cash goodwill impairment [7, 6] - Adjusted EPS was $1.30, an $0.08 improvement compared to Q2 2024 [6] - Adjusted operating profit was approximately flat year-over-year at $247 million, driven by favorable business mix and improved cost structure [6, 7] - EBITDA was a loss of $742 million, while adjusted EBITDA was $302 million, a decrease of 4% [7] YTD 2025 Financial Performance - Hasbro's total revenue increased by 7% to $1868 million for the first six months of 2025, with momentum in Wizards and licensing offsetting declines in Consumer Products [8, 10] - Wizards of the Coast & Digital Gaming segment revenue increased by 28% to $985 million [8, 16] - Consumer Products segment revenue declined by 10% to $841 million [8, 16] - Hasbro reported a net loss of $757 million, or $5.41 per share, impacted by a $1022 million non-cash goodwill impairment [8, 10] - Adjusted EPS was $2.35, a $0.52 improvement compared to 1H 2024 [8] - Adjusted operating profit increased by 18% to $470 million, driven by higher revenues and favorable business mix [8, 10] - EBITDA was a loss of $530 million, while adjusted EBITDA was $576 million, an increase of 19% [10] 2025 Guidance - Hasbro updated its FY 2025 guidance, projecting net revenues to be up mid-single digits in constant currency [40] - Adjusted operating margin is expected to be between 22% and 23% [40] - Adjusted EBITDA is projected to be between $1.17 billion and $1.20 billion [40]

For Immediate Release Pawtucket, R.I., July 23, 2025 -- Hasbro, Inc. (NASDAQ: HAS), a leading games, IP, and toy company, today reported financial results for the second quarter 2025. "Hasbro's return to growth in the first half of 2025 is clear validation that our Playing to Win strategy is working," said Chris Cocks, Chief Executive Officer, Hasbro, Inc. "We delivered record-setting results from MAGIC: THE GATHERING, alongside strong contributions from our games portfolio, licensing partnerships, and digi ...