Hasbro’s second quarter revenue dropped 1% to $980.8 million, with a net loss of $854.7 million. However, growth in Wizards and digital gaming helped offset a 16% revenue drop in consumer products due to toy softness. The company raised full-year guidance for mid-single digit revenue increase and improved operating margins.

Magic: The Gathering’s 23% growth fueled Hasbro’s Q2 performance, with a new tabletop card game release for Final Fantasy driving demand. CEO Chris Cocks touted the success as proof of their “Playing to Win” strategy working, setting the stage for Hasbro’s return to growth in 2025.

Inventory is up 17% year over year for Hasbro, with production and shipments restarting from China in May. Despite potential tariffs on imports from China dropping to an additional 30%, CFO and COO Gina Goetter noted that rates remain fluid. Analysts praised Hasbro’s strong Q2 results and improved outlook from their turnaround plan announced in February.

Read more at Yahoo Finance: The Gathering growth helps offset toy revenue drop