Jenga And Monopoly Maker Hasbro CFO Says Cost Savings And Margin Growth Will Offset Tariff Impact

Hasbro Inc. 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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