Core Insights - Hasbro is navigating challenges from tariffs and supply chain pressures by selectively raising prices on certain products while aiming to keep half of its offerings under $20 [1][2] - The company reported a revenue increase of 8% year-over-year to $1.39 billion, surpassing Wall Street's expectations, with adjusted earnings per share at $1.68, slightly down from the previous year [2] - Hasbro's stock has risen 36% year-to-date, and the company has raised its full-year sales outlook to high single digits, driven by successful product launches and partnerships with major entertainment franchises [3] Financial Performance - Revenue for the third quarter reached $1.39 billion, exceeding the consensus estimate of $1.35 billion [2] - Adjusted earnings per share were reported at $1.68, down 3% from the previous year but above the expected $1.63 [2] Market Dynamics - The company is experiencing a bifurcation in consumer spending, with high-income households continuing to spend on collectibles and luxury items, while lower and middle-income families are more price-sensitive [4][5] - Hasbro's strategy includes addressing the needs of both consumer segments, with a focus on providing value to budget-conscious families [4] Analyst Sentiment - Analysts remain optimistic about Hasbro's stock, with Jefferies analyst Kylie Cohu reiterating a Buy rating and highlighting strong engagement among adult collectors and demand for products like "Magic: The Gathering" [6]

Financial Performance - Q1 2025 sales decreased to $2352 million from $2735 million in Q1 2024[24] - Adjusted EBITDA for Q1 2025 was $188 million, down from $223 million in Q1 2024[24] - Q1 2025 adjusted free cash flow improved to -$101 million from -$168 million in Q1 2024[33] - Diluted adjusted EPS decreased to $0.13 from $0.26 year-over-year[24] Cost Savings and Outlook - The company is accelerating its cost-savings plan, increasing 2025 cost savings from $175 million to $225 million[12, 17] - Full-year sales guidance is maintained at ~$9.5 billion to $10.0 billion[37] - Full-year adjusted EBITDA guidance is maintained at ~$975 million[37] - Full-year adjusted free cash flow is guided at ~$225 million[37] Segment Performance - Light Vehicle Systems sales were $1180 million, down from $1324 million in Q1 2024[47, 58] - Commercial Vehicle Systems sales were $568 million, down from $653 million in Q1 2024[47, 58] - Off-Highway Drive and Motion Systems sales were $604 million, down from $758 million in Q1 2024[47, 58]