Financial Data and Key Metrics Changes - Revenue increased by 17% to $887 million, driven by strong performance in the Magic business and licensing [22][8] - Adjusted operating profit rose 50% to $222 million, with an adjusted margin of 25.1%, a 5.5 percentage point improvement year-over-year [22][9] - Adjusted earnings per diluted share increased by 70% to $1.04, reflecting top-line growth and margin expansion [22][23] Business Segment Data and Key Metrics Changes - Wizards of the Coast segment revenue grew 46% to $462 million, with Magic revenue up 45% due to strong demand for recent releases [23][24] - Consumer products revenue declined by 4% to $398 million, but the adjusted operating loss improved by 18% to $31 million [26][22] - The entertainment segment saw a modest decline of 5% in revenue to $27 million, primarily due to deal timing [27] Market Data and Key Metrics Changes - The company noted minimal impact from tariffs in Q1, with a focus on maintaining low costs and healthy margins through domestic sourcing [28][26] - Approximately 50% of the US toy and game volume originates from China, with plans to reduce this significantly [31][30] Company Strategy and Development Direction - The company is accelerating a $1 billion cost savings plan to offset tariff pressures and is prioritizing key price points to capture market share [12][22] - A multi-decade licensing agreement with Disney for Marvel and Star Wars was extended, enhancing category rights [14][15] - The company is diversifying its sourcing to mitigate tariff impacts, with a target to reduce China exposure below 40% by 2026 [111][112] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the current global trade environment and the potential for higher consumer prices due to tariffs [16][17] - The guidance remains unchanged, supported by strong performance in games and licensing, but prolonged tariff conditions create unpredictability [33][39] - The company is optimistic about the resilience of the toy category, viewing it as a small luxury that tends to perform better than other discretionary categories [50][51] Other Important Information - The company generated $138 million in operating cash and returned $98 million to shareholders via dividends [28][29] - The company is committed to maintaining a balanced approach to capital allocation, focusing on core growth engines while prioritizing debt reduction [41][42] Q&A Session Summary Question: How are tariffs impacting consumer spending? - Management sees potential impacts on consumer spending similar to the 2008 recession, with the toy category expected to remain resilient [49][50] Question: What are the conversations with retailers regarding order patterns? - Retailers are managing inventory fluidly, with no significant cancellations observed, and discussions are ongoing about pricing strategies [54][55] Question: Will prolonged tariffs create structural costs? - Yes, there will be incremental tariff exposure next year if current duties continue, but the company is diversifying its supply chain to mitigate this [69][70] Question: How is the company managing pricing in light of tariffs? - The company is focused on maintaining consistent prices for consumers and is discussing pricing strategies with retailers [59][60] Question: What is the outlook for the Wizards segment? - The Wizards segment is expected to perform well, with strong demand signals and a raised full-year outlook [36][80] Question: How is the company addressing manufacturing shifts from China? - The company is accelerating its diversification efforts, with plans to reduce reliance on China for manufacturing [30][31]

Core Viewpoint - Hasbro is facing significant financial impacts due to potential tariffs from the ongoing trade war, with estimates of a $300 million hit to its bottom line if the 145% levy on imports from China is implemented [1][2]. Financial Performance - Hasbro reported better-than-expected earnings, but the focus of investors and analysts was primarily on the implications of the trade war [1]. - The company maintained its full-year guidance, projecting a gross impact of $100 million to $300 million across the enterprise in 2025, depending on various tariff scenarios [2]. Tariff Impact - The CFO indicated that the forecast considers scenarios for China tariffs ranging from 50% to 145%, with an additional 10% for the rest of the world [2]. - CEO Chris Cocks noted that prolonged tariff conditions could lead to structural costs and increased market unpredictability, ultimately resulting in higher consumer prices [2]. Business Resilience - Despite the challenges, Hasbro believes it is well-positioned due to its robust games and licensing businesses and strategic flexibility [2]. - The U.S. games business benefits from digital and domestic sourcing, with many board games produced in Massachusetts [2]. - The Wizards of the Coast division has limited tariff exposure, with less than $10 million at risk due to domestic production in North Carolina, Texas, and Japan [2].

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Hasbro (HAS) came out with quarterly earnings of $1.04 per share, beating the Zacks Consensus Estimate of $0.67 per share. This compares to earnings of $0.61 per share a year ago. These figures are adjusted for non- recurring items. This quarterly report represents an earnings surprise of 55.22%. A quarter ago, it was expected that this toy maker would post earnings of $0.38 per share when it actually produced earnings of $0.46, delivering a surprise of 21.05%. Over the last four quarters, the company has s ...

Q1 2025 Earnings APRIL 24, 2025 USE OF NON-GAAP FINANCIAL MEASURES Supplemental Financial Data the financial tables accompanying this presentation include non-GAAP financial measures as defined under SEC rules, specifically Adjusted operating profit. Adiusted operating margin. Adjusted net earnings and Adjusted net earnings per diluted share. which exclude, where applicable, acquired intangible amortization, strateqic transformation initiatives, restructuring and severance costs, loss on disposal of busines ...

Company News - Hasbro shares increased over 7% in premarket trading due to better profit margins and the announcement of new Star Wars toys as part of a deal with Disney [3] - Procter & Gamble's shares fell 1.3% after the company reported fiscal third-quarter revenue that missed Street estimates and lowered its guidance [3] - Comcast's shares rose nearly 1% after beating Street expectations on first-quarter profit, although the company continued to lose broadband subscribers [3] - PepsiCo's stock remained relatively unchanged after missing quarterly earnings and cutting its full-year outlook due to the negative impacts of tariffs [4] Market Overview - The S&P 500 added 88 points, or 1.7%, closing at 5,376, while the Dow rose 420 points, or 1.1%, finishing at 39,607, and the Nasdaq jumped 2.5% to 16,708 [5] - The S&P is still down 5.2% since the April 2 'liberation day' announcement, indicating ongoing volatility in the market [6] - Recent tariff relief discussions have led to a flattening of the Treasury yield curve, with 10-year and 30-year Treasury yields down, while the 2-year yield rose to its highest since April 11 [7]

[Executive Summary / Company Overview](index=1&type=section&id=Executive%20Summary%20%2F%20Company%20Overview) Hasbro reported strong Q1 2025 financial results with significant revenue and profit growth, driven by strategic shifts and key segment performance, while maintaining its full-year outlook [Introduction](index=1&type=section&id=Introduction) Hasbro, Inc. reported strong financial results for Q1 2025, including growth in revenue, operating profit, and net earnings, and announced a quarterly dividend - Hasbro, Inc. (NASDAQ: HAS) reported Q1 2025 financial results, with growth in revenue, operating profit, and net earnings[1](index=1&type=chunk) [First Quarter 2025 Highlights](index=1&type=section&id=First%20Quarter%202025%20Highlights) Hasbro's Q1 2025 revenue grew 17%, primarily driven by a 46% increase in the Wizards and Digital Gaming segment, with significant growth in operating profit and EPS reflecting a favorable business mix and profitability Key Financial Highlights for Q1 2025 | Metric | Q1 2025 | Change | | :-------------------------------- | :------ | :----- | | Total Revenue | +17% | | | Wizards and Digital Gaming Revenue | +46% | | | Consumer Products Revenue | -4% | (Exceeded expectations) | | Operating Profit | $171M | | | Operating Profit Margin | 19.2% | | | Adjusted Operating Profit | $222M | +$74M | | Adjusted Operating Profit Margin | 25.1% | +5.5 percentage points | | Diluted EPS | $0.70 | | | Adjusted Diluted EPS | $1.04 | | | Operating Cash Flow | $138M | ($178M in prior year) | | Returned to Shareholders | $98M | (Dividends) | | Debt Reduction | $50M | | | Tariff Impact | No significant impact | (Due to timing of implementation) | - `Monopoly Go!` contributed **$39 million** in revenue this quarter[6](index=6&type=chunk) [CEO and CFO Commentary](index=1&type=section&id=CEO%20and%20CFO%20Commentary) CEO Chris Cocks highlighted the success of the "Playing to Win" strategy, rigorous execution, and key partnerships, while CFO Gina Goetter noted strong revenue and profit growth from a strategic shift to higher-margin businesses, with Wizards and licensing strength offsetting tariff pressures - CEO Chris Cocks stated that the "Playing to Win" strategy is yielding results in a challenging environment, with the company performing well through rigorous execution, collaboration with outstanding partners like Disney, and investments for the future[2](index=2&type=chunk) - CFO Gina Goetter noted strong Q1 revenue growth and significant profit improvement, driven by a strategic shift to higher-margin businesses, with the strength of the Wizards business, licensing, and an asset-light model continuing to offset tariff pressures and support margins[3](index=3&type=chunk) [Segment Performance](index=1&type=section&id=Segment%20Performance) Hasbro's Q1 2025 performance was driven by exceptional growth in Wizards of the Coast and Digital Gaming, offsetting a slight decline in Consumer Products and an operating loss in Entertainment [Wizards of the Coast and Digital Gaming](index=1&type=section&id=Wizards%20of%20the%20Coast%20and%20Digital%20Gaming) This segment was a primary growth driver, with revenue increasing 46% and operating profit up 87%, primarily fueled by Magic: The Gathering (tabletop and ARENA), digital and licensed games, and Dungeons & Dragons Wizards of the Coast and Digital Gaming Segment Performance | Metric | Q1 2025 | Q1 2024 | Change % | | :-------------------------- | :------ | :------ | :------- | | External Net Revenue | $462.1M | $316.3M | 46% | | Operating Profit | $230.0M | $122.8M | 87% | | Operating Profit Margin | 49.8% | 38.8% | +11.0 percentage points | Wizards of the Coast and Digital Gaming Segment Revenue by Category | Category | Q1 2025 Revenue | Q1 2024 Revenue | Change % | | :---------------------- | :-------------- | :-------------- | :------- | | Tabletop Games | $343.8M | $228.2M | 51% | | Digital and Licensed Games | $118.3M | $88.1M | 34% | | Magic: The Gathering | $346.3M | $237.9M | 46% | | Total Hasbro Gaming | $550.1M | $408.0M | 35% | - Growth was primarily driven by strong performance in **Magic: The Gathering** (both tabletop and ARENA), along with continued momentum in digital and licensed games and **Dungeons & Dragons**[6](index=6&type=chunk) [Consumer Products](index=2&type=section&id=Consumer%20Products) The Consumer Products segment saw a 4% revenue decrease but exceeded expectations due to strong licensing performance; despite a negative operating profit margin, the adjusted margin improved by 1.4 percentage points, benefiting from lower operating expenses Consumer Products Segment Performance | Metric | Q1 2025 | Q1 2024 | Change % | | :-------------------------- | :------ | :------ | :------- | | External Net Revenue | $398.3M | $413.0M | -4% | | Operating Profit (Loss) | $(43.9)M | $(46.9)M | 18% (Improvement) | | Operating Profit Margin | -11.0% | -11.4% | +0.4 percentage points | | Adjusted Operating Profit Margin | -7.8% | -9.2% | +1.4 percentage points | - Revenue decreased by **4%** but exceeded expectations due to strong licensing performance[13](index=13&type=chunk) - Key brands including **MARVEL**, **BEYBLADE**, **TRANSFORMERS**, **MONOPOLY**, and licensed products all achieved growth[13](index=13&type=chunk) Consumer Products Segment Net Revenue by Major Geographic Region | Geographic Region | Q1 2025 Revenue | Q1 2024 Revenue | Change % | | :---------------- | :-------------- | :-------------- | :------- | | North America | $231.4M | $239.1M | -3% | | Europe | $85.0M | $87.5M | -3% | | Asia Pacific | $53.8M | $48.8M | 10% | | Latin America | $28.1M | $37.6M | -25% | [Entertainment](index=2&type=section&id=Entertainment) The Entertainment segment's revenue decreased by 5% due to transaction timing, resulting in an operating loss of $11 million compared to a profit in the prior year, with adjusted operating profit also slightly down Entertainment Segment Performance | Metric | Q1 2025 | Q1 2024 | Change % | | :-------------------------- | :------ | :------ | :------- | | External Net Revenue | $26.7M | $28.0M | -5% | | Operating Profit (Loss) | $(11.2)M | $5.8M | (Shift from profit to loss) | | Adjusted Operating Profit | $17.4M | $18.2M | -4% | Entertainment Segment Net Revenue by Category | Category | Q1 2025 Revenue | Q1 2024 Revenue | Change % | | :------------- | :-------------- | :-------------- | :------- | | Film and TV | $4.3M | $0M | >100% | | Family Brands | $22.4M | $28.0M | -20% | - The **5%** revenue decrease this quarter was related to the timing of transactions[13](index=13&type=chunk) [Financial Outlook and Capital Allocation](index=2&type=section&id=Financial%20Outlook%20and%20Capital%20Allocation) Hasbro reaffirms its 2025 financial guidance, prioritizing core business investment, balance sheet strengthening, and consistent shareholder returns through dividends [2025 Company Outlook](index=2&type=section&id=2025%20Company%20Outlook) Hasbro maintains its full-year 2025 guidance issued on February 20, citing uncertainty in the current tariff environment, with capital allocation priorities focused on investing in core businesses, strengthening the balance sheet to achieve leverage targets, and returning cash to shareholders - The company is not changing its full-year 2025 guidance issued on February 20, given the uncertainty in the current tariff environment[8](index=8&type=chunk) - The company's capital allocation priorities are to invest in its core businesses; strengthen its balance sheet and achieve its leverage targets; and return cash to shareholders[8](index=8&type=chunk) [Dividend Announcement](index=2&type=section&id=Dividend%20Announcement) Hasbro paid **$98 million** in cash dividends to shareholders in Q1 and announced a quarterly cash dividend of **$0.70 per share**, payable on June 4, 2025, to shareholders of record as of May 21, 2025 - The company paid **$98 million** in cash dividends to shareholders in the first quarter[9](index=9&type=chunk) - The Board of Directors has declared a quarterly cash dividend of **$0.70 per share**, payable on June 4, 2025, to shareholders of record at the close of business on May 21, 2025[9](index=9&type=chunk) [About Hasbro](index=2&type=section&id=About%20Hasbro) Hasbro is a leading global game, IP, and toy company with over a century of experience, committed to creating joy through play and consistently recognized for its strong corporate citizenship [Company Profile](index=2&type=section&id=Company%20Profile) Hasbro is a leading game, IP, and toy company dedicated to creating joy and community through the magic of play, leveraging over 100 years of expertise to unlock value from new and existing IPs across various entertainment forms to reach global audiences - Hasbro is a leading game, IP, and toy company with a mission to create joy and community through the magic of play, boasting over **100 years of expertise**[11](index=11&type=chunk) - Through its Franchise-First strategy, Hasbro unlocks value from new and existing IPs such as **Magic: The Gathering**, **Dungeons & Dragons**, **MONOPOLY**, **Hasbro Gaming**, **NERF**, **TRANSFORMERS**, **PLAY-DOH**, and **Peppa Pig**, as well as major partner brands[12](index=12&type=chunk) [Corporate Citizenship](index=2&type=section&id=Corporate%20Citizenship) For over a decade, Hasbro has consistently received recognition for its corporate citizenship, including being named one of 3BL Media's "100 Best Corporate Citizens" and a "2025 Industry Leader" by JUST Capital - Hasbro has consistently received recognition for its corporate citizenship for over a decade[13](index=13&type=chunk) - Recognitions include being named one of 3BL Media's **'100 Best Corporate Citizens'** and a **'2025 Industry Leader'** by JUST Capital[13](index=13&type=chunk)[14](index=14&type=chunk) [Financial Statements](index=6&type=section&id=Financial%20Statements) Hasbro's Q1 2025 financial statements show increased net revenue, operating profit, and net earnings, alongside changes in cash flow and a strengthened balance sheet with reduced liabilities [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 30, 2025, Hasbro's total assets were **$6.0782 billion**, a slight decrease from March 31, 2024, with total liabilities also decreasing while total shareholders' equity increased Condensed Consolidated Balance Sheets (Millions of US Dollars) | Metric | March 30, 2025 | March 31, 2024 | | :--------------------------- | :------------- | :------------- | | Cash and Cash Equivalents | $621.1 | $570.2 | | Total Current Assets | $1,953.7 | $1,995.4 | | Total Assets | $6,078.2 | $6,203.0 | | Total Current Liabilities | $1,142.3 | $1,792.2 | | Long-Term Debt | $3,331.5 | $2,966.9 | | Total Liabilities | $4,880.7 | $5,173.1 | | Total Shareholders' Equity | $1,197.5 | $1,029.9 | [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) In Q1 2025, Hasbro's net revenue was **$887.1 million**, a significant increase from Q1 2024, with operating profit and net earnings attributable to Hasbro also growing substantially, leading to higher diluted EPS Consolidated Statements of Operations (Millions of US Dollars) | Metric | Q1 2025 | Q1 2024 | As a % of Net Revenue (Q1 2025) | As a % of Net Revenue (Q1 2024) | | :--------------------------- | :------ | :------ | :-------------------------- | :-------------------------- | | Net Revenue | $887.1 | $757.3 | 100.0% | 100.0% | | Total Costs and Expenses | $716.4 | $641.1 | 80.8% | 84.7% | | Operating Profit | $170.7 | $116.2 | 19.2% | 15.3% | | Earnings Before Income Taxes | $136.6 | $81.0 | 15.4% | 10.7% | | Net Earnings | $99.5 | $59.1 | 11.2% | 7.8% | | Net Earnings Attributable to Hasbro, Inc. | $98.6 | $58.2 | 11.1% | 7.7% | | Diluted Earnings Per Share | $0.70 | $0.42 | | | | Cash Dividends Declared | $0.70 | $0.70 | | | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities decreased to **$138.1 million** in Q1 2025 from **$177.8 million** in Q1 2024, primarily due to changes in operating assets and liabilities, while net cash used in investing and financing activities increased Condensed Consolidated Statements of Cash Flows (Millions of US Dollars) | Metric | Q1 2025 | Q1 2024 | | :--------------------------- | :------ | :------ | | Net Cash Provided by Operating Activities | $138.1 | $177.8 | | Net Cash Used in Investing Activities | $(52.4) | $(48.1) | | Net Cash Used in Financing Activities | $(162.4) | $(108.9) | | Net Increase (Decrease) in Cash and Cash Equivalents | $(73.9) | $24.8 | | Cash and Cash Equivalents at End of Period | $621.1 | $570.2 | [Non-GAAP Financial Measures and Reconciliations](index=4&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) Hasbro utilizes various non-GAAP metrics to provide a clearer view of underlying business performance by adjusting for specific non-recurring or non-operational items, enhancing transparency for investors [Non-GAAP Measures Definition](index=4&type=section&id=Non-GAAP%20Measures%20Definition) Hasbro uses several non-GAAP financial measures, including adjusted operating profit, adjusted operating profit margin, adjusted net earnings, adjusted diluted EPS, EBITDA, and adjusted EBITDA, which exclude specific items like acquisition-related intangible asset amortization, strategic transformation initiatives, restructuring, and severance costs, and business divestiture-related costs to provide a clearer view of underlying business performance - Non-GAAP measures include **adjusted operating profit**, **adjusted operating profit margin**, **adjusted net earnings**, **adjusted diluted EPS**, **EBITDA**, and **adjusted EBITDA**[18](index=18&type=chunk) - These measures exclude items such as acquisition-related intangible asset amortization, strategic transformation initiatives, restructuring and severance costs, business disposition losses, and costs related to the eOne film and TV business divestiture[18](index=18&type=chunk) - Management believes these adjusted metrics provide investors with insight into the underlying performance of the business, excluding the impact of non-recurring events, and reflect resources available for strategic opportunities[18](index=18&type=chunk) [Reconciliation of EBITDA and Adjusted EBITDA](index=11&type=section&id=Reconciliation%20of%20EBITDA%20and%20Adjusted%20EBITDA) Hasbro's EBITDA increased to **$212.4 million** in Q1 2025 from **$157.8 million** in Q1 2024, with adjusted EBITDA showing a more significant increase to **$274.3 million**, reflecting adjustments for share-based compensation, strategic transformation initiatives, restructuring, and divestiture-related costs Reconciliation of EBITDA and Adjusted EBITDA (Millions of US Dollars) | Metric | Q1 2025 | Q1 2024 | | :--------------------------- | :------ | :------ | | Net Earnings Attributable to Hasbro, Inc. | $98.6 | $58.2 | | EBITDA | $212.4 | $157.8 | | Adjusted EBITDA | $274.3 | $172.8 | - Adjustments to adjusted EBITDA for Q1 2025 include **$18.4 million** for share-based compensation, **$7.2 million** for strategic transformation initiatives, **$5.9 million** for restructuring and severance costs, **$25.0 million** for business disposition losses, and **$5.4 million** for costs related to the eOne film and TV business divestiture[27](index=27&type=chunk) [Reconciliation of Adjusted Operating Profit](index=12&type=section&id=Reconciliation%20of%20Adjusted%20Operating%20Profit) Adjusted operating profit for Q1 2025 significantly increased to **$222.4 million** from **$148.6 million** in Q1 2024, with adjustments primarily accounting for acquisition-related intangible asset amortization, strategic transformation initiatives, restructuring costs, and divestiture-related expenses Reconciliation of Adjusted Operating Profit (Millions of US Dollars) | Metric | Q1 2025 | Q1 2024 | | :--------------------------- | :------ | :------ | | Operating Profit (Loss) | $170.7 | $116.2 | | Non-GAAP Adjustments | $51.7 | $32.4 | | Adjusted Operating Profit (Loss) | $222.4 | $148.6 | - Non-GAAP adjustments to operating profit for Q1 2025 include **$12.4 million** for acquisition-related intangible asset amortization, **$7.2 million** for strategic transformation initiatives, **$5.9 million** for restructuring and severance costs, **$25.0 million** for business disposition losses, and **$1.2 million** for costs related to the eOne film and TV business divestiture[28](index=28&type=chunk) [Reconciliation of Net Earnings and EPS](index=13&type=section&id=Reconciliation%20of%20Net%20Earnings%20and%20EPS) Adjusted net earnings attributable to Hasbro significantly increased to **$147.0 million** (**$1.04 diluted EPS**) in Q1 2025, up from **$84.9 million** (**$0.61 diluted EPS**) in Q1 2024, driven by multiple non-GAAP adjustments Reconciliation of Net Earnings and EPS (Millions of US Dollars, except per share data) | Metric | Q1 2025 | Diluted EPS (Q1 2025) | Q1 2024 | Diluted EPS (Q1 2024) | | :--------------------------- | :------ | :-------------------------- | :------ | :-------------------------- | | Net Earnings Attributable to Hasbro, Inc. | $98.6 | $0.70 | $58.2 | $0.42 | | Adjusted Net Earnings Attributable to Hasbro, Inc. | $147.0 | $1.04 | $84.9 | $0.61 | - Key adjustments to adjusted net earnings for Q1 2025 include **$9.3 million** for acquisition-related intangible asset amortization, **$5.5 million** for strategic transformation initiatives, **$4.5 million** for restructuring and severance costs, **$25.0 million** for business disposition losses, and **$4.1 million** for costs related to the eOne film and TV business divestiture[29](index=29&type=chunk)[30](index=30&type=chunk) [Forward-Looking Statements and Risks](index=3&type=section&id=Forward-Looking%20Statements%20and%20Risks) This section outlines Hasbro's forward-looking statements regarding future performance and strategies, emphasizing the inherent risks and uncertainties that could cause actual results to differ materially [Forward-Looking Statement Safe Harbor](index=3&type=section&id=Forward-Looking%20Statement%20Safe%20Harbor) This press release contains forward-looking statements regarding business strategy, product expectations, tariff impacts, cost savings, and financial targets, which are subject to various known and unknown risks and uncertainties, including the ability to execute strategies, market competition, tariff effects, global economic conditions, and reliance on third parties - This press release contains "forward-looking statements" regarding business strategies and plans, product, game, and entertainment expectations, anticipated impact of tariffs, cost savings, and financial targets and guidance[16](index=16&type=chunk) - Actual actions or results may differ materially from forward-looking statements due to known and unknown risks and uncertainties, including the ability to successfully implement and execute business strategies, competitive capabilities in the gaming industry, the imposition or threat of tariffs, global and regional economic conditions, and reliance on third-party relationships[16](index=16&type=chunk)[19](index=19&type=chunk) - Additional risks include concentration of product manufacturing in China, success of key partner brands, ability to attract and retain talent, ability to achieve cost savings and efficiencies, asset and intellectual property protection, seasonality, product recalls, and changes in accounting treatment, tax laws, or regulations[19](index=19&type=chunk)

Group 1 - The U.S. stock market experienced a significant rebound after a period of decline, with the Dow Jones Industrial Average gaining 2.6%, S&P 500 up 3%, and Nasdaq increasing by 4% [2] - Consumer goods companies such as Hasbro and Mattel saw notable stock price increases, with Hasbro up 5.1% and Mattel up 6.6% [2] - The optimism in the market is attributed to President Trump's announcement of a potential substantial reduction in tariffs on Chinese imports, which previously stood at 145% [5][6] Group 2 - Hasbro and Mattel rely heavily on imports from China, with estimates suggesting that up to 70% of their toys are sourced from there, making them vulnerable to high tariffs [5][6] - Walmart, as a major retailer, also sources a significant portion of its consumer goods from China, thus benefiting from the reduced tariff threat [6] - Valuation remains a critical factor for investors, with Hasbro trading at a price-to-earnings (P/E) ratio of 19 and Mattel at 9, compared to Walmart's higher P/E ratio of nearly 40 [7]

Core Viewpoint - Hasbro, Inc. is set to report its first-quarter fiscal 2025 results on April 24, with expectations of earnings growth and revenue increase compared to the previous year [1][2]. Financial Estimates - The Zacks Consensus Estimate for earnings is 67 cents per share, reflecting a growth of 9.8% from 61 cents reported a year ago [2]. - Revenue estimates stand at $769.7 million, indicating a rise of 1.6% from the prior-year quarter [2]. Performance Factors - Strong performance in the MAGIC ecosystem, growth in licensing, and lower promotional discounts are expected to positively impact Hasbro's results [3]. - The focus on entertainment pipeline, strategic partnerships, and new product innovations is anticipated to contribute to favorable outcomes [3]. Revenue Projections - Franchise brand revenues are projected to increase by 1% year over year to $612.8 million, while Partner brands are expected to grow by 5.1% to $92.1 million [4]. - Portfolio brand revenues are predicted to decline by 4.4% year over year to $60.3 million [4]. Gaming Demand - Hasbro is experiencing strong demand in gaming, with a diverse gaming portfolio and initiatives aimed at enhancing gaming experiences across various platforms [5]. - The company's shift towards technology-driven toys and product launches is likely to support long-term profit growth [5]. External Challenges - The uncertain global tariff environment may continue to impact Hasbro's operations, raising production costs and potentially affecting sales and profitability [6]. - Tariffs on Chinese imports and possible retaliatory measures have previously strained operations and are expected to affect performance in the upcoming quarter [6]. Earnings Prediction Model - The current model does not predict an earnings beat for Hasbro, with an Earnings ESP of -4.19% and a Zacks Rank of 3 [7].

In its upcoming report, Hasbro (HAS) is predicted by Wall Street analysts to post quarterly earnings of $0.69 per share, reflecting an increase of 13.1% compared to the same period last year. Revenues are forecasted to be $769.7 million, representing a year-over-year increase of 1.6%.Over the last 30 days, there has been a downward revision of 1.5% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial fo ...