Hasbro raised its annual revenue forecast today, as the toymaker leans on strength of “Magic: The Gathering” games and cost-cutting efforts to weather the impact from mounting economic and tariff uncertainty.
The Monopoly maker beat market expectations for second-quarter results, sending its shares up about 1% in premarket trading.
While Hasbro has benefited from a steady growth in segments such as digital gaming, the company and its peer Mattel remain vulnerable to the volatile tariff dynamic as a chunk of the US merchandise is sourced from China.
To tackle a potential rise in tariff-driven costs, Hasbro has announced job cuts and sought to diversify its manufacturing and logistics footprint as it imports nearly half of its goods from China.
“Despite a dynamic macro environment, the strength of our diversified business and cost productivity initiatives support our updated outlook,” Hasbro’s finance chief Gina Goetter said.
Hasbro expects annual revenue to be up mid-single digits in constant-currency terms, compared with prior predictions to be up slightly.
In the second quarter, its revenue in “Wizards of the Coast” and digital gaming segment rose 16% due to momentum in “Magic: The Gathering”, whose revenue surged 23% on growth in tabletop.
It reported a net loss of $855.8 million, or $6.10 per share, compared to a profit of $138.5 million, or 99 cents a year ago, due to a $1 billion non-cash charge tied to its consumer products segment triggered by new tariffs.
On an adjusted basis, Hasbro earned $1.30 per share, compared with the market expectation of 78 cents, according to estimates compiled by LSEG.
Hasbro posted net revenue of $980.8 million, beating estimates of $880 million, in the quarter ended June 29.
Shares of Barbie maker Mattel, which will reports quarterly results after markets close, were also up 2% in premarket trading.
