Spooky season is big business in the retail world, even as consumers trim their spending overall amid persistent inflation and other concerns. The National Retail Federation estimates Halloween spending will increase by 13% year-over-year (YOY) to more than $13 billion this year, with customers adding costumes, decorations, candy, and more to their carts in anticipation. Investors might see this as an opportunity to focus on some retailers specializing in holiday goods, all of whom could get a boost thanks ...

The collaboration includes seven unique Secret Lair drops featuring cards from The Last of Us Secret Lair cards: Joel, Ellie, and Abby featuredThe collaboration includes three Secret Lair drops based on Naughty Dog properties. The Last of Us Part I drop features Joel and Ellie cards that can function independently or work together as a pair in Magic: The Gathering gameplay.The Last of Us Part II Secret Lair drop includes Abby and Ellie cards representing their intertwining survival stories. The Uncharted S ...

Company Overview - Hasbro, Inc. has a market cap of $10.5 billion and is recognized for its brands like Monopoly, NERF, and Transformers [1] - The company operates in consumer products, Wizards of the Coast & digital gaming, and entertainment/licensing, focusing on scaling gaming and licensing while streamlining traditional toy operations [1] Market Position - Hasbro is classified as a "large-cap" stock due to its valuation, and it has a diverse intellectual property portfolio that includes both traditional toys and high-growth gaming franchises [2] - The company benefits from a strong recurring revenue model through Wizards of the Coast, particularly with Magic: The Gathering and Dungeons & Dragons, which have a dedicated player base [2] Stock Performance - Hasbro's stock has experienced a decline of 8.5% from its 52-week high of $82.19, while gaining 3.7% over the past three months, underperforming the Nasdaq Composite's 13% rise [3] - Year-to-date, HAS stock has increased by 34.6%, outperforming the Nasdaq's 16.5% rise, but has only surged 4.6% over the past 52 weeks compared to the Nasdaq's 24.5% [4] Financial Results - In Q2 2025, Hasbro reported an adjusted EPS of $1.30 and revenue of $980.8 million, exceeding market expectations [5] - Despite the positive earnings report, shares dropped 2.3% due to a 16% decline in consumer products sales, attributed to U.S. retailers holding back orders amid tariff concerns [5] - Nearly half of Hasbro's sourcing is from China, leading to expected tariff-related costs of $60 million, although management aims to reduce this sourcing to 40% by 2027 [5]

Group 1: Trading Card Market Dynamics - Hasbro Inc. and Target Corporation are experiencing a surge in trading-card demand, particularly for Magic: The Gathering, which is expected to drive growth into late 2025 [1][2] - Retailers are increasing shelf space for trading cards and collectibles, with Target reporting a 70% year-to-date sales increase, projected to exceed $1 billion in 2025 [4] - The Wizards Play Network store count has grown by approximately 1,500 locations since year-end 2024, indicating a 20% growth in distribution [5] Group 2: Consumer Engagement and Market Trends - The U.S. population aged 0–12 peaked in 2016 and is expected to decline through 2036, prompting retailers to focus on higher-engagement categories like trading cards [6] - Unique players in the trading card ecosystem increased by about 40% year-over-year in the first half of 2025, with event attendance at MagicCon rising over 25% from the previous year [5] Group 3: Financial Outlook and Revenue Projections - Bank of America analyst Alexander Perry has adjusted Mattel's third-quarter EPS forecast to $1.02, down from $1.08, while expecting a holiday rebound [7] - For Hasbro, consumer products revenue is projected to decline by 3.5% in the third quarter but improve to approximately +1.0% in the fourth quarter [7] - Global video-game spending has been growing at a high-single-digit pace since 2010, contrasting with low-single-digit growth for traditional toys, highlighting a shift in consumer spending [8]

Anyone keen to set up a ‘Magic: The Gathering’ online exchange?We can use bitcoins to trade the cards like stocks online, rather than physical.I’ve mocked up a marketplace logo. https://t.co/d5mN24u3RADFarmer (@OGDfarmer):Ok Pokemon is cool and all, but when are bringing Magic:The Gathering on chain?If you’re building or raising, I’m interested and dm’s are open… https://t.co/61MaqxY0hl ...

Core Insights - Sales of traditional toys by Hasbro and Mattel declined in Q2 due to delayed orders from retailers concerned about potential price increases from tariffs [2][4] - Both companies believe they are positioned to handle tariff impacts but are uncertain about consumer spending on toys amid rising household expenses [3][4] - Hasbro and Mattel reported earnings surprises, with Hasbro's net sales down 1% and Mattel's down 6%, both less than expected [4][5] Hasbro Insights - Hasbro's gaming segment, including Wizards of the Coast, saw a 16% revenue growth, while traditional toys decreased by 16% [6] - The recent release of Magic: The Gathering based on Final Fantasy achieved $200 million in revenue in one day, indicating strong demand [8] - Hasbro's CEO warned that popular toys might be hard to find during the holidays due to delayed orders, specifically mentioning Play-Doh Barbie and other new lines [9][10] Mattel Insights - Mattel is focusing on growth through its entertainment division, planning to release one to two films annually starting in 2026 [12] - The company is collaborating with OpenAI to enhance interaction with toy characters using AI technology [14] - Despite a larger-than-expected sales decline, Mattel reported growth in its American Girl brand and anticipates strong sales from upcoming product lines [15][16] Industry Trends - Both Hasbro and Mattel are diversifying away from traditional toys, with Hasbro's acquisition of Wizards of the Coast proving beneficial [5] - The toy industry is facing challenges from tariffs, but larger companies like Hasbro and Mattel have the financial resources to mitigate impacts and potentially gain market share [17]

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]

Financial Data and Key Metrics Changes - Net revenue for Q2 2025 was $981 million, essentially flat year over year, driven by the strength of the Magic segment [19] - Adjusted operating profit was $247 million with an adjusted operating margin of 25.2%, up 20 basis points from the previous year [19] - Adjusted earnings per diluted share rose to $1.30, a 7% increase year over year, attributed to favorable mix and margin discipline [20] Business Line Data and Key Metrics Changes - Wizards of the Coast and digital gaming segment revenue grew 16% to $522 million, led by The Gathering, which delivered 23% growth [20] - Consumer products revenue declined 16% to $442 million, primarily due to retailer order timing and market softness in select geographies [21] - Entertainment segment revenue was $16 million, in line with expectations, contributing $10 million in adjusted operating profit [22] Market Data and Key Metrics Changes - North America saw a decline in consumer products sales, while EMEA and APAC regions performed well and are expected to end the year in growth mode [14] - The organized play segment saw a nearly 40% year-over-year increase in unique players during the first half of 2025, indicating strong community engagement [11] Company Strategy and Development Direction - The company is focused on its "Playing to Win" strategic plan, emphasizing premium, high-margin segments like Wizards, licensing, and digital [6] - A new exclusive publishing agreement for a Dungeons and Dragons action-adventure game was announced, reflecting the company's commitment to investing in top-tier talent and expanding digital engagement [13] - The company is diversifying its supply chain to reduce reliance on China, aiming to bring that exposure down to less than 40% by 2027 [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to growth in 2025, backed by record operating margins and strong performance across diversified portfolios, especially in the Magic segment [18] - The company raised its full-year guidance for revenue, margin, and adjusted EBITDA, reflecting continued strength in the Wizards business and improved visibility into the back half of the year [28] - Management acknowledged the impact of tariffs but noted that the current rates are more favorable than previously anticipated, leading to a lower expected expense in 2025 [24] Other Important Information - A non-cash goodwill impairment charge of $1 billion was recorded in the consumer products segment due to the impact of tariffs and trade uncertainty [25] - The company is on track to achieve $175 million to $225 million in gross cost savings this year, prioritizing investments in core growth engines while maintaining financial flexibility [29] Q&A Session Summary Question: Can you discuss the demand for Final Fantasy and how it compared to expectations? - Management noted that Final Fantasy exceeded expectations, achieving $200 million in revenue within one day, significantly faster than previous major releases [36][38] Question: How do you view the midterm outlook and potential for operating margin expansion? - Management reaffirmed the midterm outlook, indicating that while this year is outperforming expectations, they still see a path to growth despite potential headwinds [52][54] Question: What is the health of the Magic player base and the impact of Universes Beyond sets? - The unique player base in organized play increased by 40% year over year, with Universes Beyond sets effectively bringing in new players [123]

Group 1 - U.S. equities showed mixed performance, with the S&P 500 and Nasdaq declining from record highs while the Dow Jones Industrial Average increased [1][5] - Tesla (TSLA) shares fell due to a renewed conflict between CEO Elon Musk and President Trump, who suggested an investigation into Tesla's subsidies [1][5] - Sweetgreen (SG) shares dropped following a downgrade and price target cut by TD Cowen, citing weakness in urban locations [2] - AeroVironment (AVAV) shares decreased after announcing a $1.35 billion stock and convertible notes offering to finance its $4.1 billion acquisition of BlueHalo [2] Group 2 - Shares of Wynn Resorts (WYNN), Las Vegas Sands (LVS), and MGM Resorts International (MGM) surged after Macau casinos reported June gambling revenues exceeding expectations [3][5] - Packaging Corporation of America (PKG) shares rose after acquiring Greif's containerboard business for $1.8 billion [3] - Hasbro (HAS) shares increased following an upgrade from Goldman Sachs, which highlighted potential benefits from the "Magic: The Gathering" card game [3] Group 3 - Oil and gold futures experienced an increase, while the yield on the 10-year Treasury note advanced [4] - The U.S. dollar strengthened against the euro and pound but weakened against the yen [4] - Most major cryptocurrencies traded lower [4]

Core Insights - Hasbro Inc (NASDAQ:HAS) is experiencing a significant increase in stock price, currently trading at $76.48, up 3.6%, following an upgrade from Goldman Sachs to "buy" from "neutral" [1] - Goldman Sachs raised its price target for Hasbro from $66 to $85, highlighting the strength of the Wizards of the Coast unit and a resilient core toy business [1] Stock Performance - Since reaching a 52-week low of $49.00 on April 9, Hasbro's stock has been on an upward trend, recently finding support at the 20-day moving average, and is up 36.8% year-to-date [2] - The stock has achieved its fourth consecutive weekly gain, indicating positive momentum heading into the second half of the year [2] Analyst Ratings - The majority of analysts covering Hasbro are bullish, with all but one of the 14 analysts rating the stock as "buy" or better, suggesting potential for further price-target increases [3] - The 12-month consensus price target stands at $79.04, which is close to the current trading levels, indicating room for upward adjustments [3] Options Market Activity - Options traders are showing increased bullish sentiment, with a 10-day call/put volume ratio of 3.32, ranking higher than 73% of readings from the past year [4] - Hasbro's options prices are currently reasonable, as indicated by a Schaeffer's Volatility Index (SVI) of 25%, which is in the low 8th percentile of its annual range [4]