PAWTUCKET – Hasbro Inc. on Wednesday reported a second-quarter loss of $855.8 million despite stronger-than-expected sales fueled by Magic: The Gathering, after posting a $138.5 million profit in the same period a year earlier.
The toy and gaming giant said it had a loss of $6.10 per diluted share compared to a profit of 99 cents per diluted share the year prior.
Hasbro blamed the quarterly loss on a $1 billion noncash Goodwill impairment charge in the consumer products segment caused by the effects of tariffs.
Hasbro shares finished trading Wednesday down 0.73% at $76.84 on the Nasdaq composite.
Hasbro posted revenue of $980.8 million for the quarter, a decrease from $995.3 million the year prior. This beat Wall Street forecasts. Five analysts surveyed by Zacks Investment Research expected $888.1 million.
Magic: The Gathering revenue grew 23% driven by the release of Final Fantasy, the company said, which set the record as being the biggest set release in Wizards history.
“Hasbro’s return to growth in the first half of 2025 is clear validation that our Playing to Win strategy is working,” said Hasbro CEO Chris Cocks. “We delivered record-setting results from ‘Magic: The Gathering,’ alongside strong contributions from our games portfolio, licensing partnerships, and digital initiatives. With this momentum, we’re increasing our full-year outlook and positioning Hasbro for sustained growth in 2025 and beyond.”
Consumer products revenue decreased 16% to $442.4 million in the second quarter due to growth in licensing being offset by anticipated softness in toys driven by retailer order timing and geographic volatility due to inflation and tariff concerns.
“As we foreshadowed last quarter, most of our U.S. retailers managed their discretionary inventory tightly through the quarter,” said Gina Goetter, Hasbro chief financial officer and chief operating officer. “While revenue declined, we improved margins, delivering mere break-even profitability through cost actions, mix and promotional-spending discipline.
“Our teams are executing decisively against the evolving tariff backdrop, while the current China tariff rate is more favorable than what was proposed in April, rates remain fluid,” Goetter said.
Entertainment segment revenue declined 15% to $16 million in the quarter due to the nature and timing of deals due to inflation and tariff concerns.
The company did not address if it had decided to move its company headquarters from Pawtucket to Boston’s Seaport District. Hasbro has previously stated “an announcement will come later this summer."
In November, the I-195 Redevelopment District Commission offered a key 1-acre plot on the west side of the Providence River to Hasbro for $1 to persuade the company from relocating to Massachusetts.
Pawtucket also made a bid to Hasbro to take over a 20-acre parcel that includes the former Apex department store building. Mayor Donald R. Grebien called the plan a “bold and comprehensive” proposal to relocate to a site with direct pedestrian access to the new Tidewater entertainment district – which includes the new Centreville Bank Stadium.
On June 18, Hasbro announced it is laying off 3% of its global workforce due to tariffs. Hasbro spokesperson Abby Hodes told Providence Business News then that the company was cutting less than 30 jobs in New England. The Wall Street Journal reported 3% of Hasbro’s workforce would be 150 employees based on the company’s 2024 annual report.
(UPDATE: Updates Hasbro's stock after market close.)
