Core Insights - The international gaming industry is witnessing significant revenue growth, with Hasbro's "Monopoly Go" achieving over $5 billion in revenue within 24 months, making it the fastest mobile game to reach this milestone [1][3] - The Pokémon Trading Card Game Pocket has also shown impressive performance, generating $1 billion in revenue within 204 days of its launch [1][3] Group 1: Hasbro and Pokémon - Hasbro and Mattel are planning to invest more in video game products due to the success of "Monopoly Go" and the Pokémon card game, indicating a trend of combining physical brands with virtual worlds [3] - The Pokémon Trading Card Game (PTCG) Pocket, launched by DeNA, has seen a total of 40 billion cards collected globally, with over 100 million downloads and a monthly active user base of approximately 51 million [5][7] - PTCG Pocket's revenue for the fiscal year ending March 2025 reached 28 billion yen, a 120% increase year-on-year, with operating profit of 18.6 billion yen, recovering from a loss of 200 million yen in the previous year [5] Group 2: TCG Market Dynamics - The TCG market in Japan is evolving, with new products and brands emerging, as seen in the March 2025 sales rankings where Pokémon, Duel Masters, and Yu-Gi-Oh! lead the market [4] - Bandai's "One Piece" card game achieved sales of 94.2 billion yen, a 56.22% increase, while "Dragon Ball" sales reached 29.9 billion yen, up 30% [14] - Bushiroad's TCG sales increased by 27.7% year-on-year, with successful launches of new card games like "Love Live!" and continued strong performance from established products [33][37] Group 3: Marketing and Events - PTCG Pocket is actively releasing new card packs and features, enhancing user engagement through trading options and promotional events [7][12] - Bandai is hosting global events for its card games, including tournaments and promotional activities, to maintain player interest and engagement [21][23] - Tomy has successfully launched "Disney Lorcana," which has quickly gained popularity through extensive marketing campaigns and events, including large-scale competitions [26][30]

Core Viewpoint - The Trump administration's tariff actions have faced significant legal challenges, with federal judges ruling against the imposition of tariffs on toy importers in Illinois, indicating that the administration's approach may be unconstitutional and unauthorized by Congress [1][4]. Group 1: Legal Rulings - Judge Rudolph Contreras issued a ruling to block tariffs on toy importers Learning Resources and hand2mind, stating that the Trump administration's tariffs on trade with countries like China are illegal [1]. - The U.S. International Trade Court also ruled against the Trump administration's tariff policies, asserting that the president exceeded his authority by imposing tariffs on countries with trade surpluses with the U.S. [4]. - Both courts concluded that the International Emergency Economic Powers Act (IEEPA) does not grant the president the authority to impose such tariffs [5]. Group 2: Impact on Companies - Learning Resources and hand2mind, which employ around 500 workers across several states, argued that the tariffs could lead to their closure despite having survived the COVID-19 pandemic [1]. - Following the court's decision, shares of toy companies Mattel (MAT) and Hasbro (HAS) experienced fluctuations, with Mattel maintaining a gain and Hasbro slightly increasing its gains after initially dipping [2].

玩具公司美泰维持超过1%的涨幅，孩之宝涨超0.3%。 ...

Core Viewpoint - Jakks Pacific (JAKK) shares have increased by approximately 5.3% over the past month, underperforming the S&P 500, raising questions about the sustainability of this trend leading up to the next earnings release [1] Group 1: Earnings and Estimates - No earnings estimate revisions have been made by analysts in the last two months [2] Group 2: VGM Scores - Jakks has a strong Growth Score of A, but a low Momentum Score of F; it also holds an A grade for value, placing it in the top 20% for this investment strategy, resulting in an aggregate VGM Score of A [3] Group 3: Outlook - Jakks holds a Zacks Rank 1 (Strong Buy), indicating expectations for above-average returns in the coming months [4] Group 4: Industry Performance - Jakks is part of the Zacks Toys - Games - Hobbies industry, where Hasbro (HAS) has seen a 7.1% increase in the past month; Hasbro reported revenues of $887.1 million for the last quarter, reflecting a year-over-year increase of 17.1% [5] - Hasbro's expected earnings for the current quarter are $0.77 per share, indicating a year-over-year decline of 36.9%, with a Zacks Rank 3 (Hold) and a VGM Score of B [6]

Core Viewpoint - Hasbro, Inc. is expected to benefit from strong performance in MAGIC: The Gathering, operational adjustments, and licensing partnerships, while facing challenges from an uncertain macro environment [1] Group 1: Growth Drivers - Hasbro's Playing to Win strategy is showing early momentum in 2025, focusing on high-growth categories and enhanced consumer engagement, with significant gains from MAGIC: The Gathering and Monopoly Go! [2] - The company is safeguarding key price points ($9.99 and $19.99) and collaborating with retailers to maintain shelf space for major new releases, while operational adjustments aim to boost flexibility and mitigate trade-related risks [3] - Hasbro is prioritizing investments in promising franchises like MAGIC: THE GATHERING and Play-Doh, while optimizing profitability from lower-growth brands and reinventing the NERF business model [4] Group 2: Licensing and Revenue Projections - Hasbro is expanding its licensing strategy with Disney, securing broader rights across Marvel and Star Wars properties, which supports scaling intellectual property through collaborative partnerships [5] - The model predicts a year-over-year revenue increase of 11.2% in 2025 for Digital and Licensed Gaming, reaching $524.7 million [5] Group 3: Cost Management and Financial Performance - The company is expediting a $1 billion cost savings initiative to address ongoing tariff challenges, with total adjusted EBITDA reaching $274 million in the fiscal first quarter, a 59% year-over-year increase [6] - Hasbro aims for $175 million to $225 million in gross cost savings this year, supported by strong performance from the Wizards segment and accelerated cost reductions [7] Group 4: Macro Environment and Challenges - Hasbro is navigating a challenging macroeconomic environment with rising tariff rates on imports from China, estimating a gross financial impact between $100 million and $300 million depending on policy developments [10] - The company anticipates a net profit impact ranging from $60 million to $180 million due to trade policy shifts and consumer behavior, despite stability from its games and licensing segments [11]

Financial Data and Key Metrics Changes - The company reported the highest operating profit margin in its history, exceeding 20% [18][19] - Strong results were noted across the board, particularly in Wizards of the Coast and digital games, which reached all-time highs [18] Business Line Data and Key Metrics Changes - Consumer products returned to profitability, indicating a positive shift in this segment [18] - The Playing to Win strategy is already showing strong demand across key brands and growing licensing momentum [22] Market Data and Key Metrics Changes - The company is experiencing signs of recovery in consumer products despite a volatile tariff environment [22] - Nearly 70% of revenue comes from higher-margin categories like games, digital, and licensing, which have less exposure to global supply risks [23] Company Strategy and Development Direction - The company has reshaped itself into a faster, leaner, and more focused business by exiting non-core operations and prioritizing high-margin growth areas [19][20] - The Playing to Win strategy focuses on profitable franchises, targeting products for fans aged 13 and older, expanding reach across demographics, and investing in digital and direct channels [20][21] Management's Comments on Operating Environment and Future Outlook - The company acknowledges macro pressures but emphasizes control over retail partnerships, supply chain improvements, and margin protection through disciplined execution [23] - The company is positioned to be aggressive in the toy business, aiming to grow market share while others are cautious [23][24] Other Important Information - The long-term partnership with Disney has been extended, enhancing relationships around major intellectual properties like Marvel and Star Wars [23] Q&A Session Summary - No questions were submitted during the Q&A session [26]

Group 1 - The core viewpoint of the articles highlights the positive impact of the recent US-China tariff adjustments on the global toy industry, leading to increased orders and stock price surges for major US toy companies [1][3][5] - Following the announcement of the tariff changes, US toy giants such as Mattel and Hasbro saw significant stock price increases, with Mattel's stock rising over 12% and Hasbro's by 5% [3] - The US toy market heavily relies on Chinese manufacturing, with nearly 80% of toys sold in the US produced in China, indicating the critical role of China in the global toy supply chain [3][4] Group 2 - Many US retailers and toy companies are rushing to place orders with Chinese manufacturers to meet urgent demands, with reports of factories operating overtime to fulfill these orders [5][6] - The adjustment of tariffs has alleviated previous concerns about rising production costs and supply chain disruptions, which had led to significant stock sell-offs in the toy sector [4][6] - Companies are now focusing on diversifying their markets and enhancing product value to mitigate risks associated with fluctuating trade policies [7][12] Group 3 - The toy industry is witnessing a shift towards innovation and high-quality products, with companies moving away from low-cost competition to focus on new product development [12][13] - Emerging markets in Southeast Asia, the Middle East, and Latin America are becoming new growth engines for the toy industry, driven by rising consumer demand for quality and innovative toys [13] - Companies are increasingly adopting strategies to explore local consumer preferences and cultural nuances to better position their products in these new markets [13]

Core Insights - Hasbro is adjusting its strategies in response to a significant reduction in tariffs on Chinese imports from 145% to 30%, which has positively impacted the company's planning and pricing strategies [1][2][6] Group 1: Pricing and Product Strategy - The reduction in tariffs has led Hasbro to pause many planned pricing changes that were initially set under the 145% tariff regime, allowing for more thoughtful pricing decisions moving forward [2][3] - The company had previously planned to discontinue certain products due to unfavorable manufacturing costs but is now reconsidering those plans in light of the new tariff situation [4][5] Group 2: Financial Impact - Hasbro had estimated that the 145% tariffs could reduce its annual net profits by $180 million, but with the new 30% tariff, this figure is now projected to be between $50 million and $70 million [6] - The company acknowledges that the current tariff agreement is temporary and the trade environment remains uncertain, indicating that ongoing adjustments will be necessary [6]

Hasbro (HAS) FY Conference Summary Company Overview - **Company**: Hasbro, Inc. (HAS) - **Date of Conference**: May 14, 2025 - **Key Speakers**: Gina Gedder (CFO and COO) Key Points Organizational Changes and Strategy - Hasbro is undergoing a multi-year transformation, with approximately two and a half years completed and another two and a half years expected to finalize the process [8][9] - The initial focus was on simplifying operations, reducing complexity, and divesting from the eOne entertainment business [9] - SKU count has been reduced by nearly 80%, and efforts have been made to clean up inventory and balance sheets [10] - The "Playing to Win" strategy was launched in February, emphasizing play, partnership, and profitability [10][12] - The strategy includes three business categories: growth, optimized, and reinvent, with growth businesses accounting for about 75% of revenue [12][13] Financial Performance and Projections - Midterm revenue growth target is set at a mid-single-digit rate, with annual margin expansion of 0.5 to 1 percentage point [26] - The first quarter saw a 46% growth in the Magic business, indicating strong demand and player engagement [30][34] - The company has not observed significant changes in consumer behavior despite tariff pressures, with holiday sales expected to remain strong [38][40] Tariff Impact and Pricing Strategy - The company is navigating tariff implications, with a recent reduction in anticipated tariff rates from 145% to 30%, which is expected to lessen the financial burden [42][50] - Pricing strategies are being adjusted based on the new tariff landscape, with a focus on maintaining competitive price points [46][48] - Approximately 45-50% of the product portfolio is priced at $20 or less, which is crucial for consumer accessibility [46] Balance Sheet and Debt Management - Hasbro has prioritized balance sheet health, focusing on inventory management and debt reduction following the eOne acquisition [66][68] - Inventory levels are reported to be healthy, returning to pre-COVID levels, allowing for better cash flow management [66] - The company aims to reduce debt to around 2.5 times leverage, with ongoing efforts to buy back or pay down debt [68] Future Growth and Investment - Hasbro is committed to investing in growth opportunities, particularly within the Wizards segment, which includes video games and other gaming initiatives [62][63] - The company is exploring direct-to-consumer sales channels, which currently represent a $100 million business [77] - Future plans include potential share buybacks starting in 2026, contingent on debt reduction and cash flow from new game launches [87][88] Consumer Trends and Market Position - Hasbro is adapting to changing consumer behaviors, particularly the shift towards digital gaming, while leveraging its IP across various platforms [72][74] - The company is focusing on improving demand planning and supply chain management in response to the loss of traditional retail partners like Toys R Us [80][79] Additional Insights - The executive team has undergone significant changes, with about 70% of leadership being new to their roles [15][16] - AI implementation is in the early stages, aimed at enhancing operational efficiency and analytical capabilities [19][20] - The company is actively reshoring some production to the U.S. to mitigate supply chain risks [55]

Part I - Financial Information [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) Q1 2025 financials show total assets of $6.04 billion, net revenues of $887.1 million (up 17.1%), and net earnings of $98.6 million, driven by strong segment growth Consolidated Balance Sheet Highlights (in millions) | Account | March 30, 2025 | December 29, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $1,912.8 | $2,242.5 | | **Total Assets** | $6,040.0 | $6,340.3 | | **Total Current Liabilities** | $1,156.0 | $1,401.3 | | **Long-term Debt** | $3,331.5 | $3,380.8 | | **Total Liabilities** | $4,842.5 | $5,155.3 | | **Total Shareholders' Equity** | $1,197.5 | $1,185.0 | - Cash and cash equivalents decreased to **$621.1 million** from **$695.0 million** at year-end 2024[13](index=13&type=chunk) - Inventories increased to **$295.8 million** from **$274.2 million** at year-end 2024[13](index=13&type=chunk) Consolidated Statements of Operations Q1 2025 vs Q1 2024 Performance (in millions, except per share data) | Metric | Q1 2025 (ended Mar 30) | Q1 2024 (ended Mar 31) | Change | | :--- | :--- | :--- | :--- | | Net Revenues | $887.1 | $757.3 | +17.1% | | Operating Profit | $170.7 | $116.2 | +46.9% | | Net Earnings Attributable to Hasbro | $98.6 | $58.2 | +69.4% | | Diluted EPS | $0.70 | $0.42 | +66.7% | | Cash Dividends Declared per Share | $0.70 | $0.70 | 0% | - A loss on disposal of business of **$25.0 million** was recorded in Q1 2025, compared to **$9.1 million** in Q1 2024[15](index=15&type=chunk) Consolidated Statements of Comprehensive Earnings (Loss) - Total comprehensive earnings attributable to Hasbro, Inc. was **$105.4 million** in Q1 2025, a significant increase from **$56.4 million** in Q1 2024[18](index=18&type=chunk) - The increase was driven by higher net earnings and a positive foreign currency translation adjustment of **$10.2 million**, compared to a loss of **$4.0 million** in the prior year[18](index=18&type=chunk) Consolidated Statements of Cash Flows Cash Flow Summary (in millions) | Activity | Q1 2025 (ended Mar 30) | Q1 2024 (ended Mar 31) | | :--- | :--- | :--- | | Net cash provided by operating activities | $138.1 | $177.8 | | Net cash utilized by investing activities | ($52.4) | ($48.1) | | Net cash utilized by financing activities | ($162.4) | ($108.9) | - The decrease in operating cash flow was primarily due to changes in working capital, specifically a smaller decrease in accounts receivable compared to the prior year[21](index=21&type=chunk) - Financing activities in Q1 2025 included **$97.9 million** in dividend payments and **$49.2 million** in debt repayments[21](index=21&type=chunk) Consolidated Statements of Shareholders' Equity - Total shareholders' equity increased from **$1,185.0 million** at the end of fiscal 2024 to **$1,197.5 million** at the end of Q1 2025[24](index=24&type=chunk) - The increase was primarily driven by net earnings of **$98.6 million**, partially offset by dividends declared of **$98.4 million**[24](index=24&type=chunk) Condensed Notes to Consolidated Financial Statements Q1 2025 Net Revenue by Segment (in millions) | Segment | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Wizards of the Coast and Digital Gaming | $462.1 | $316.3 | +46% | | Consumer Products | $398.3 | $413.0 | -4% | | Entertainment | $26.7 | $28.0 | -5% | Q1 2025 Net Revenue by Brand Portfolio (in millions) | Brand Portfolio | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Grow Brands | $653.4 | $521.7 | +25% | | Optimize Brands | $132.1 | $141.8 | -7% | | Reinvent Brands | $101.6 | $93.8 | +8% | - The company recorded a **$25.0 million** expense related to the settlement of a holdback amount from the sale of its eOne Film and TV business[48](index=48&type=chunk) - The company repurchased **$50.4 million** of its 2026 and 2027 Notes, recording a gain on extinguishment of **$1.2 million**[59](index=59&type=chunk) - Restructuring charges related to the 'Operational Excellence' program were **$1.8 million** in Q1 2025, with a remaining liability of **$39.1 million**[82](index=82&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reported Q1 2025 revenue increased 17% to $887.1 million, driven by Wizards of the Coast, with operating profit improving and a new 'Playing to Win' strategy launched Overview and Recent Developments - The company launched a refreshed strategy, 'Playing to Win', to refocus on play and partnership, aiming to become a highly profitable and diverse toy and game company[100](index=100&type=chunk) - The five strategic building blocks of 'Playing to Win' are: Profitable Franchises, Aging Up, Everyone Plays, Digital and Direct, and Partner Scale[102](index=102&type=chunk) - Brand portfolios were realigned into Grow, Optimize, and Reinvent categories to correspond with the new strategy[101](index=101&type=chunk)[102](index=102&type=chunk) - The company estimates a potential negative gross impact to operating profit of **$100 million** to **$300 million** in 2025 from tariffs, with a net profit impact of **$60 million** to **$180 million** after mitigation efforts[104](index=104&type=chunk) Results of Operations Q1 2025 vs Q1 2024 Operating Results (as % of Net Revenues) | Line Item | Q1 2025 % | Q1 2024 % | | :--- | :--- | :--- | | Cost of Sales | 23.1% | 27.0% | | Operating Profit | 19.2% | 15.3% | | Net Earnings | 11.2% | 7.8% | - Net revenue increased **17%** YoY, driven by a **46%** increase in the Wizards of the Coast and Digital Gaming segment, partially offset by a **4%** decline in Consumer Products[108](index=108&type=chunk) - Grow Brands revenue increased **25%**, primarily from MAGIC: THE GATHERING, MONOPOLY, and MARVEL products, including digital licensing for MONOPOLY GO - Cost of sales as a percentage of revenue decreased from **27.0%** to **23.1%** due to a product mix shift towards higher-margin digital and consumer product licensing[112](index=112&type=chunk) Segment Results Q1 2025 Operating Profit by Segment (in millions) | Segment | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Wizards of the Coast and Digital Gaming | $230.0 | $122.8 | +87% | | Consumer Products | ($43.9) | ($46.9) | -6% | | Entertainment | ($11.2) | $5.8 | -293% | | Corporate and Other | ($4.2) | $34.5 | -112% | - Wizards of the Coast and Digital Gaming revenue grew **46%**, driven by higher digital licensing for MONOPOLY GO! and a **51%** increase in Tabletop Gaming revenue from MAGIC: THE GATHERING[127](index=127&type=chunk) - Consumer Products revenue decreased **4%**, driven by declines in NERF, GI JOE, and PLAY-DOH, partially offset by growth in BEY BLADE, MARVEL, and TRANSFORMERS[129](index=129&type=chunk) - Entertainment segment's operating loss of **$11.2 million** was primarily due to a non-recurring **$25.0 million** loss on the disposal of the eOne Film and TV business[132](index=132&type=chunk) Liquidity and Capital Resources - The company believes cash from operations and available credit are adequate to meet working capital needs for the next twelve months[136](index=136&type=chunk) - As of March 30, 2025, cash and cash equivalents totaled **$621.1 million**[138](index=138&type=chunk) - The company has a **$1.25 billion** revolving credit facility, with no borrowings outstanding as of March 30, 2025[140](index=140&type=chunk) - During Q1 2025, the company repurchased **$50.4 million** of its outstanding debt[142](index=142&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from foreign currency fluctuations, using hedging, and holds $3.4 billion in fixed-rate debt - The company is exposed to market risks from fluctuations in foreign currency exchange rates, particularly the U.S. dollar, Euro, British pound, Canadian dollar, Japanese Yen, Brazilian real, and Mexican peso[149](index=149&type=chunk) - To manage exposure, the company hedges a portion of its forecasted foreign currency transactions using foreign exchange forward and option contracts[150](index=150&type=chunk) - As of March 30, 2025, the company had **$3.4 billion** in fixed-rate debt and no outstanding interest rate swaps[152](index=152&type=chunk) [Item 4. Controls and Procedures](index=35&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of March 30, 2025, with no material changes to internal control - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of March 30, 2025[156](index=156&type=chunk) - There were no changes in internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control[157](index=157&type=chunk) Part II - Other Information [Item 1. Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings) The company is defending a class action lawsuit regarding inventory statements, with two related shareholder derivative actions dismissed - A putative class action lawsuit was filed on November 13, 2024, alleging violations of securities laws related to statements about the company's inventory[158](index=158&type=chunk) - The company intends to vigorously defend against these claims and is unable to estimate a reasonably possible range of loss at this stage[158](index=158&type=chunk) - Two shareholder derivative actions with nearly identical allegations were filed and subsequently voluntarily dismissed by the plaintiffs[159](index=159&type=chunk)[160](index=160&type=chunk) [Item 1A. Risk Factors](index=37&type=page&id=Item%201A.%20Risk%20Factors) There have been no material changes from the risk factors previously disclosed in the company's 2024 Form 10-K or subsequent filings - There are no material changes from the risk factors as previously disclosed in the company's 2024 Form 10-K[162](index=162&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=37&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase common stock in Q1 2025, with $241.6 million remaining available under its share repurchase authorization - No repurchases of the Company's Common Stock occurred during the three months ended March 30, 2025[164](index=164&type=chunk) - As of March 30, 2025, Hasbro had **$241.6 million** remaining available under its share repurchase authorization[164](index=164&type=chunk) [Item 3. Defaults Upon Senior Securities](index=37&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon its senior securities during the reporting period - None[165](index=165&type=chunk) [Item 4. Mine Safety Disclosures](index=37&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[166](index=166&type=chunk) [Item 5. Other Information](index=38&type=section&id=Item%205.%20Other%20Information) No officers or directors adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q1 2025 - During the three months ended March 30, 2025, none of the company's officers or directors adopted or terminated a 'Rule 10b5-1 trading arrangement' or 'non-Rule 10b5-1 trading arrangement'[167](index=167&type=chunk) [Item 6. Exhibits](index=39&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate governance documents, debt indentures, and certifications - The report lists numerous exhibits, including Restated Articles of Incorporation, Bylaws, various debt Indentures, new forms of Restricted and Performance Stock Unit Agreements, and officer certifications required by the SEC[168](index=168&type=chunk)