Hasbro ((HAS)) has held its Q2 earnings call. Read on for the main highlights of the call.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Hasbro’s Latest Earnings Call: Positive Sentiment Despite Challenges
The latest earnings call from Hasbro revealed a generally positive sentiment, primarily driven by the exceptional performance of Wizards of the Coast and an upward revision in revenue guidance. However, the company also faces challenges, particularly in the Consumer Products segment and from tariff impacts.
Strong Performance from Wizards of the Coast
Wizards of the Coast emerged as a standout performer this quarter, with its flagship game, MAGIC: THE GATHERING, experiencing a remarkable 23% growth year-over-year in Q2 and a 32% increase year-to-date. The release of the Final Fantasy set, now the biggest in MAGIC’s history, has significantly boosted player growth and engagement, contributing to the segment’s success.
Increased Revenue Guidance
Buoyed by strong results in the first half of 2025, Hasbro has raised its full-year revenue guidance to reflect mid-single-digit growth. The company also adjusted its EBITDA guidance to a range of $1.17 billion to $1.2 billion, showcasing confidence in its financial trajectory.
Expansion in Licensing and Digital Segments
Hasbro’s licensing and digital segments continue to thrive, with MONOPOLY GO! achieving notable user and revenue milestones. This expansion underscores the company’s strategic focus on diversifying its revenue streams and capitalizing on digital opportunities.
Operational Cost Savings
In a bid to enhance profitability, Hasbro reported $98 million in gross savings in the first half of 2025, keeping it on track to meet its annual savings target of $175 million to $225 million. These cost-saving measures are crucial in offsetting other financial pressures.
Consumer Products Revenue Decline
The Consumer Products segment faced a 16% revenue decline in Q2, attributed mainly to retailer order timing and market softness in certain regions. This decline highlights the challenges Hasbro faces in maintaining growth across all segments.
Impact of Tariffs
Tariffs have imposed a $60 million expense on Hasbro in 2025, leading to a $1 billion noncash goodwill impairment charge in the Consumer Products segment. This impact underscores the external pressures affecting the company’s financial performance.
Inventory Management Challenges
Retailers’ decisions to delay holiday inventory builds and push shelf resets into Q3 have impacted Consumer Products revenue. Hasbro is responding with agile inventory management strategies to navigate these challenges effectively.
Forward-Looking Guidance
Hasbro’s forward-looking guidance remains optimistic, with expectations for continued growth driven by Wizards of the Coast. The company anticipates high 20% revenue growth for this segment, with an operating margin between 42% and 43%. Despite challenges in the Consumer Products segment, Hasbro expects sequential performance improvements and has raised its overall 2025 guidance for mid-single-digit revenue growth and an adjusted operating margin of 22% to 23%.
In conclusion, Hasbro’s latest earnings call reflects a positive outlook bolstered by the strong performance of Wizards of the Coast and strategic expansions in licensing and digital segments. While challenges in the Consumer Products segment and tariff impacts pose concerns, the company’s proactive measures and revised guidance suggest a resilient path forward.