Hasbro (HAS) earnings Q2 2025

Toy and gaming large Hasbro topped Wall Street expectations for the second quarter as energy in its digital gaming division helped offset continued weaknesses in its conventional toy enterprise, weighed down by the impression of tariffs.

“While tariffs represent a headwind for the business,” Hasbro’s CEO Chris Cocks stated on the corporate’s earnings name. “We are compensating for these costs through a combination of cost reductions, rebalancing our marketing spend, diversifying our supplier mix and implementing some targeted pricing actions.”

Shares fell roughly 4% in Wednesday morning buying and selling.

Here’s how the corporate carried out within the quarter ended June 29 in comparison with what Wall Street was anticipating.

• Earnings per share: $1.30 adjusted vs. 78 cents anticipated
• Revenue: $980.8 million vs. $880 million anticipated

The toy firm reported a web lack of $855.8 million, or $6.10 per share, for the interval, in contrast with web earnings of $138.5 million, or 99 cents per share, within the same quarter a year ago.

Hasbro attributed the loss to a $1 billion goodwill impairment associated to its shopper merchandise phase and the impression of tariffs.

Overall income declined 1% from the identical quarter final yr, however the firm’s gaming division continued to outperform. Wizards of the Coast and digital gaming introduced in $522.4 million in gross sales, up 16% yr over yr. Hasbro cited robust demand for Magic: The Gathering and Monopoly Go!

“This isn’t just a one-off moment. It’s a clear indication of the power of Magic’s community,” Cocks stated. “Magic is stronger than ever, and we’re just getting started.”

Meanwhile, the corporate’s shopper merchandise phase noticed income fall 16% to $442.4 million, pressured by “anticipated softness in Toys driven by retailer order timing and geographic volatility,” Hasbro stated within the launch.

Revenue within the leisure phase dropped 15% to $16 million.

Hasbro raised its full-year steering and now expects mid-single-digit income progress, adjusted earnings earlier than curiosity, taxes, depreciation and amortization, or EBITDA, of between $1.17 billion and $1.2 billion, and adjusted working margins of twenty-two% to 23%.