Shares of the company rose about 3% in premarket trading after Hasbro reported better-than-expected quarterly results. Revenue climbed to $1.39 billion, topping analysts’ estimates of $1.34 billion, according to data from LSEG.
Hasbro now expects fiscal 2025 revenue to grow by high single digits, up from its earlier guidance of mid-single-digit growth. The company also lifted its adjusted EBITDA forecast to a range of $1.24 billion–$1.26 billion, compared with a prior range of $1.17 billion–$1.20 billion.
The toymaker credited its Wizards of the Coast and Digital Gaming division — home to hits like Magic: The Gathering — for driving growth, with the segment’s revenue surging 42% year-on-year, compared with a 5% drop in the same period last year. The digital performance helped offset sluggish sales in Hasbro’s traditional toy segment, which continues to face pressure from weak consumer demand amid persistent inflation and volatile U.S. trade policy under President Donald Trump.
“We managed tariff volatility with agility, protected margins through cost productivity and pricing discipline, and continued to advance our transformation initiatives,” said Gina Goetter, Hasbro’s chief financial officer.
The broader toy industry has been grappling with escalating U.S.-China trade tensions. New threats of a 100% tariff on Chinese goods could further strain manufacturers that rely heavily on Asian production hubs.
Rival Mattel Inc. this week reported weaker-than-expected third-quarter results, as retailers delayed orders for Barbie and Hot Wheels due to an uncertain economic outlook — underscoring the challenges facing traditional toy sales.
Despite the headwinds, Hasbro’s upbeat forecast reflects growing confidence in its digital strategy and its ability to navigate trade and inflationary pressures heading into the critical holiday shopping season.