Hasbro has a victory hand with the Wizard and bumps into retail trends
- Hasbro We reported the first quarter of 2025 thanks to a surge in one business segment. The company also kept its 2025 guidance out of hand despite other retailers making changes due to the imminent tariff impact. However, other toy manufacturers have warned that tariffs could hurt the entire industry.
While many retailers have lowered guidance for the fiscal year in anticipation of President Donald Trump’s tariff barrage, we are confident that one toy company can survive the storm.
Hasbro – Toymers of all ages Behind On Thursday, Play-Doh, Monopoly, Nerf, Dungeons & Dragons It has been reported Strong first quarter of 2025. Revenues increased 17%, earnings per share Beat estimate $1.04, $0.67 per share.
Hasbro CEO Chris Cocks praised the success of that quarter for its huge growth in its life Coast Wizard A segment that produces both digital and tabletop games. Revenue for that segment increased 46% in the first quarter to $462 million. And Hasbro is sure that the wizard will continue to grow. That’s part of why the company left unchanging guidance for a year, despite other retailers pulling away for fear of tariff impact.
“In spite of macro uncertainty, the wizard’s outperformance and accelerated cost reductions provide visibility to provide annual financial commitment,” Hasbro CFO Gina Goetter said in a revenue call.
Additionally, the Wizard’s tariff exposure is low, with work that year under $10 million, Cock said in his company’s revenue call on Thursday. He explains that most of the company’s domestic supply chain is produced in North Carolina and Texas, with the rest in Kyoto, Japan.
“The toy segment faces higher exposure, but is responding aggressively,” he said. “Our asset lighting sourcing model means it will help us move production quickly and mitigate the impact of tariffs.”
Successfulness with digital products can help Hasbro earn money, especially when tariffs are involved.
Hasbro can benefit from “focusing on digital limiting the impact of tariffs.” luck. Rival toy companies said, “Because of the high percentage of physical toy sales, they cut one-off purchases and are exposed to both customs and cash-rising parents.”
Hasbro was also announced in February A billion-dollar cost reduction plan It is called “Playing To Win” which will run until 2027. The 5-Pillar Plan focuses on building profitable franchises, creating attractive toys for people over 13, expanding into emerging markets, building video games, and driving new retail and licensing partnerships.
“We are accelerating our $1 billion cost savings plan to internally offset tariff pressure,” Cocks said. “Targeted pricing actions are still possible, but we prioritize key price ranges and strengthen our retail partnerships.”
However, other toymie artisans are not sure their industry can combat the imminent impact of tariffs.
“Hasbro’s recent revenue report shows the strength of their game,” said Isaac Larian, founder and CEO of MGA Entertainment. luck. “But let’s be clear. These numbers don’t reflect the coming storm.”
MGA Entertainment is Bratz and Lol Surprid! , manufacturers such as Baby Born, Little Tikes and Rainbow High, and Larian said he and all major toy companies, including Hasbro, are heavily dependent on imports from China, especially. If tariffs remain, Larian warned that consumers are coming in due to price increases and businesses need to prepare to reduce margins.
“Consumers, especially their families, feel they’re already squeezed, but they’ll become people who suffer,” Larian said. “Arriving this Christmas, we’ve seen a huge shortage in the entire toy aisle, with prices increasing by more than double digits.”
Mattelanother major toy manufacturer will announce its latest revenue in early May.
This story was originally introduced Fortune.com