Hasbro's first quarter was marked by strong revenue growth and significant margin improvement, which contributed to a positive market reaction. Management attributed the outperformance to the robust performance of the Wizards of the Coast segment, particularly Magic: The Gathering, and steady momentum in digital licensing, including Monopoly Go. CEO Chris Cocks pointed to "surging Magic business" and cost discipline from ongoing transformation initiatives as key factors, while CFO Gina Goetter credited segment mix and operational savings for the higher profitability.
Is now the time to buy HAS? Find out in our full research report (it’s free).
Hasbro (HAS) Q1 CY2025 Highlights:
- Revenue: $887.1 million vs analyst estimates of $773 million (17.1% year-on-year growth, 14.8% beat)
- Adjusted EPS: $1.04 vs analyst estimates of $0.67 (54.3% beat)
- Adjusted EBITDA: $274.3 million vs analyst estimates of $201.1 million (30.9% margin, 36.4% beat)
- Operating Margin: 19.2%, up from 15.3% in the same quarter last year
- Market Capitalization: $9.52 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Hasbro’s Q1 Earnings Call
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Christian Carlino (JPMorgan) asked about Hasbro’s tariff scenario planning and consumer demand elasticity. CEO Chris Cocks described using recession-era benchmarks and emphasized toys’ resilience as essential "small luxuries" even under pressure.
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Megan Clapp (Morgan Stanley) questioned the long-term cost structure if tariffs persist. CFO Gina Goetter explained that supply chain shifts and diversified sourcing would drive higher costs in the near term but should improve longer term as alternatives scale.
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James Hardiman (Citi) probed whether guidance assumes worst-case tariffs and industry declines. Goetter confirmed guidance is built on “cautious” assumptions, including 145% China tariffs and recession-level category declines.
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Arpiné Kocharyan (UBS) asked for detail on how much China sourcing could be reduced and the mix of mitigation levers. Goetter said the company is accelerating efforts to drop below 40% China exposure and combining supply chain, product, and pricing actions to offset costs.
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Alex Perry (Bank of America) inquired about portfolio pricing flexibility and margin impacts. Cocks replied that Hasbro will selectively raise prices, focusing on minimizing consumer burden for key items and leveraging strong brands to maintain shelf presence.
Catalysts in Upcoming Quarters
Looking forward, our team will watch (1) the pace at which Hasbro reduces its reliance on China for manufacturing, (2) the ability to maintain margin improvements despite shifting supply chains, and (3) continued momentum in games and digital licensing, including new collaborations and geographic expansion. Execution on cost savings and adaptation to evolving trade policy will also be critical benchmarks.
Hasbro currently trades at $68.16, up from $52.64 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).
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