Hasbro Relies on ‘Magic' to Offset Impact of Tariffs

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]