Jenga And Monopoly Maker Hasbro CFO Says Cost Savings And Margin Growth Will Offset Tariff Impact
Hasbro Inc. (NASDAQ:HAS), the maker of popular games like Monopoly and Jenga, reported its first-quarter FY25 earnings on Thursday.
The company reported a first-quarter revenue jump of 17.14% year-on-year to $887.10 million, beating the analyst consensus estimate of $771.15 million.
Adjusted EPS of $1.04 beat the consensus estimate of $0.67.
Segment Revenue: Consumer Products declined 4%, Wizards of the Coast and Digital Gaming surged 46%, and entertainment segment revenues decreased 5%.
Selling, distribution, and administration costs climbed 14.8%. The operating margin expanded 390 basis points to 19.2%, and operating income for the quarter surged 46.9% to $170.7 million.
Adjusted EBITDA for the quarter jumped to $274.3 million versus $172.8 million last year.
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In the first quarter, Hasbro paid $98 million in cash dividends to shareholders. The Board of Directors has declared a quarterly cash dividend of $0.70 per common share, payable on June 4, 2025, to shareholders of record at the close of business on May 21, 2025.
As of March end, the company held $621.1 million in cash and equivalents. Operating cash flow for the quarter totaled $138 million. Hasbro-owned inventory was down 12% compared to the prior year.
“We delivered strong revenue growth and a meaningful profit lift in Q1, driven by a strategic shift toward higher-margin businesses. As we progress toward our $1 billion cost savings goal, the strength of Wizards, licensing, and our asset-light model continues to offset tariff pressures and support margins,” said Chief Financial Officer and Chief Operating Officer Gina Goetter.
Hasbro said it has renewed its multi-year licensing partnership with Disney Consumer Products. The extended agreement ensures Hasbro will keep producing creative toys and games tied to franchises like Star Wars and Marvel.
Outlook: Hasbro sees FY25 revenue up slightly in constant currency. The company expects FY25 adjusted EBITDA of $1.1 billion – $1.15 billion and an adjusted operating margin of 21% – 22%.
Price Action: HAS shares traded higher by 7.74% at $56.77 in premarket at last check Thursday.
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