Hasbro exceeded Wall Street expectations for its fiscal second quarter, driven by strong performance in its digital gaming segment. The company reported adjusted earnings per share of $1.30, well above the 78 cents analysts had anticipated, and revenue of $980.8 million, beating the projected $880 million. However, shares dropped about 4% in early trading as broader structural challenges remained in focus.<\/p>\n\n\n\n
Wizards of the Coast and digital gaming led the quarter with $522.4 million in revenue, a 16% year-over-year increase. Demand was particularly strong for titles like Magic: The Gathering and the mobile game Monopoly Go!, which CEO Chris Cocks highlighted as central to the brand\u2019s long-term momentum.<\/p>\n\n\n\n
Despite digital gains, Hasbro’s core toy business continued to struggle. The consumer products segment posted a 16% revenue decline to $442.4 million. The company cited weaker retailer demand, shifting order schedules, and regional volatility as contributing factors. Tariffs also added to the pressure, particularly on imported goods.<\/p>\n\n\n\n
The entertainment segment generated just $16 million, a 15% drop compared to the prior year, signaling continued challenges in that business line.<\/p>\n\n\n\n
Hasbro posted a net loss of $855.8 million, or $6.10 per share, for the quarter, down sharply from a net income of $138.5 million last year. The loss stemmed from a $1 billion goodwill impairment related to its consumer products division, as well as costs from restructuring and severance.<\/p>\n\n\n\n
Excluding these one-time charges, the company\u2019s adjusted profit remained strong, reflecting effective cost management, supplier diversification, and selective price increases designed to offset the impact of tariffs.<\/p>\n\n\n\n
Encouraged by gaming momentum, Hasbro raised its full-year guidance. It now expects mid-single-digit revenue growth, adjusted EBITDA between $1.17 billion and $1.2 billion, and operating margins in the 22% to 23% range. The forecast suggests that the company sees continued opportunity in digital and tabletop gaming, even as it navigates softness in toys and trade policy uncertainty.<\/p>\n\n\n\n
CEO Chris Cocks emphasized that Magic: The Gathering remains a key growth engine, stating that the franchise\u2019s success reflects \u201cthe power of Magic\u2019s community\u201d and ongoing engagement across platforms.<\/p>\n\n\n\n
<\/p>\n","protected":false},"excerpt":{"rendered":"