Monopoly And Play-Doh Maker Hasbro Lifts Outlook, But Tariffs Pressure Stock

Hasbro, Inc. (NASDAQ:HAS) shares, which initially surged in premarket trading Wednesday after the company delivered a strong second-quarter earnings beat and raised its full-year outlook, have since given up their prior gains and are now trading lower. The initial rally was fueled by robust performance in its Wizards of the Coast and Digital Gaming segment.

The toy and entertainment giant reported adjusted earnings of $1.30 per share and quarterly sales of $980.8 million, significantly exceeding analyst expectations of 76 cents per share and $874.28 million in revenue, respectively.

“Hasbro’s return to growth in the first half of 2025 is clear validation that our Playing to Win strategy is working,” said Chris Cocks, Chief Executive Officer.

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Hasbro, the maker of popular games like Monopoly, Play-Doh and Jenga, said it had no impact from tariffs flowing through margin yet. However, it expects to see costs ramp in the third quarter timed with retail holiday inventory builds.

Wizards of the Coast and Digital Gaming segment rose 16% year over year to $522.4 million, Consumer Products fell 16% to $442.4 million, and the Entertainment segment slumped 15% year over year to $16 million.

Adjusted operating profit was $247 million, relatively stable year-over-year, reflecting the strength of MAGIC and a more efficient cost structure.

Adjusted operating margin expanded slightly in the quarter under review to 25.2% from 25% in the year-ago period.

In the quarter under review, Adjusted EBITDA increased to $302.0 million from $313.5 million in the year-ago period.

The company exited the quarter with cash and equivalents worth $546.9 million and inventories worth $417.1 million.

Outlook

Hasbro now anticipates full‑year revenues to grow by mid‑single digits in constant currency, up from its prior expectation of slight growth. The company has raised its adjusted operating margin forecast to 22%-23%, compared with the previous 21%-22% range.

Adjusted EBITDA guidance has also been bumped up to $1.17 billion-$1.20 billion, versus the earlier $1.1 billion-$1.15 billion estimate.

From 2025 to 2027, revenue is projected to grow at a mid‑single‑digit CAGR in constant currency. Hasbro targets $1 billion in gross cost savings over this period, using fiscal year 2021 as the base year.

In the second quarter on a year-to-date basis, the company said it delivered $98 million in gross savings, driven by supply‑chain productivity and reduced managed expenses. Approximately 50% of those savings are expected to flow through to the bottom line through 2025.

During the earnings conference call, Hasbro CFO Gina Goetter stated that the company expects $60 million in expenses in its 2025 P&L due to tariffs.

Price Action: HAS shares are trading lower by 2.25% to $75.83 premarket at last check Wednesday.

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