PAWTUCKET – Hasbro Inc. said a data breach discovered in late March is expected to delay $40 million to $60 million in second-quarter consumer products revenue and add about $20 million in one-time remediation costs this year.
The company disclosed those figures during its first-quarter earnings call Wednesday, saying the delayed sales are expected to shift into the second half of 2026 rather than be lost altogether.
Hasbro on May 13 reported a first-quarter profit of $198.4 million, an increase from the $98.6 million net income the company reported a year ago.
The company previously announced in a preliminary filing on April 23 that its first quarter earnings report would be delayed due to the cyber breach. Hasbro also said in the document that the event would not affect its first quarter earnings.
Hasbro first disclosed the cyberattack
in an April 1 filing with the U.S. Securities and Exchange Commission, saying it detected unauthorized access on March 28 and took systems offline while investigating.
During Wednesday's call, Chief Financial Officer and Chief Operating Officer Gina Goetter said the breach disrupted order management, shipping and invoicing systems after the company took systems offline to contain the incident.
Goetter said Hasbro continues to see strong consumer demand at retail despite the disruption, pointing to its upcoming entertainment slate.
“Given the strong POS we’re seeing, along with the upcoming entertainment slate, we have good line of sight into the recovery,” she said.
Hasbro said the operating expenses tied to the incident will not affect adjusted EBITDA guidance. It also said some second-quarter receivables will shift into the third quarter, temporarily impacting cash flow.
A class-action lawsuit filed April 16 in U.S. District Court in Providence alleges the company failed to adequately protect employee data and was not transparent about what information may have been compromised.
On Sept. 8, Hasbro announced plans to move its headquarters from Pawtucket to Boston’s Seaport District at 400 Summer St., housing at least 700 employees.
The company expects the transition to be completed by year-end and plans to sell its Pawtucket headquarters and adjacent building at 1027 Newport Ave.
Matthew McNulty is a PBN staff writer. He can be reached at McNulty@PBN.com or on X at @MattMcNultyNYC.
