Hasbro Anticipates Up to $300 Million Impact From Tariffs

Core Viewpoint - Hasbro experienced a revenue increase in Q1, driven by strong performance in its gaming segment, but faces challenges due to evolving tariff situations Financial Performance - Net revenues for Q1 reached $887 million, marking a 17$222 million, an increase of $74 million from the previous quarter, and the company generated$138 million in operating cash flow [2] Tariff Impact - The company stated that tariffs had no material impact on Q1 results, but anticipates a gross impact of $100 million to$300 million from tariffs in 2025 [2] - The estimated net profit impact in 2025 is projected to be between $60 million and$180 million, depending on trade policy and consumer behavior [3] Sourcing and Manufacturing Strategy - Approximately half of Hasbro's toy and game volume originates in China, necessitating sourcing diversification [3] - China will remain a key manufacturing hub due to specialized capabilities, while the company is working with customers to manage inventory and pricing strategies [4] Cost-Saving Measures - Hasbro is accelerating a $1 billion cost-savings plan to mitigate tariff pressures [4] - The company is focusing on maintaining key price points and strengthening retail partnerships to capture market share [4] Strategic Flexibility - The games business and strategic flexibility provide Hasbro with options to navigate potential tariff and consumer outcomes [5]