Hasbro's strong Q1 performance attributed to Wizards of the Coast segment revenue surge

From Yahoo Finance: 2025-04-24 14:49:00

Hasbro reported a strong Q1 with revenue up 17% and earnings per share beating estimates at $1.04. The success was attributed to a 46% surge in revenue from its Wizards of the Coast segment. Hasbro left fiscal 2025 guidance unchanged despite tariff implications. Other toymakers are less confident about combating tariffs.

Hasbro benefits from an emphasis on digital products, limiting the impact of tariffs. The company unveiled a $1 billion cost-saving plan called Playing to Win, focusing on profitable franchises and expanding into emerging markets. Hasbro’s ability to shift production quickly helps mitigate tariff impacts, unlike other toy companies facing higher exposure.

Hasbro’s success with digital products and cost-saving plan help offset tariff pressures. CEO Chris Cocks remains optimistic about the company’s ability to navigate the impact of tariffs. Other toymakers, however, fear price increases and shrinking margins due to reliance on imports, particularly from China.

MGA Entertainment CEO Isaac Larian warns of impending price increases and major shortages across toy aisles if tariffs remain in place. Consumers, especially families, could suffer from higher prices and potential product shortages. Mattel, another major toy manufacturer, is set to announce its latest earnings in early May.

Read more: Hasbro has a winning hand with Wizards, bucking the trend in retail