Oct 23 (Reuters) - Hasbro ( HAS ) raised its annual
revenue and core profit forecasts on Thursday, betting on
holiday season sales and demand for its digital gaming segment,
even as macroeconomic uncertainties cast a gloom on spending
among American shoppers.
The toymaker's digital titles, including "Magic: The
Gathering", helped offset softness in its traditional toy
business, which faces pressure from weak consumer demand amid
persistent inflation and the Trump administration's volatile
trade policy.
The company forecast fiscal-year 2025 revenue to grow by
high single digits, compared with prior expectations of
mid-single-digit rise and adjusted EBITDA - earnings before
interest, taxes, depreciation, and amortization - to be between
$1.24 billion and $1.26 billion, compared with the $1.17 billion
to $1.20 billion range forecast earlier.
The toy industry, which relies heavily on its manufacturing
hubs in regions including China, has taken a significant hit
from U.S. President Donald Trump's sweeping tariffs, with the
recent threat of a 100% duty on Chinese goods threatening to
further pressurize the industry.
"We managed tariff volatility with agility, protected
margins through cost productivity and pricing discipline, and
continued to advance our transformation initiatives," Gina
Goetter, chief financial officer, said in a statement.
The company's quarterly revenue of $1.39 billion beat
analysts' average estimate of $1.34 billion, according to data
compiled by LSEG.
Revenue in its Wizards of the Coast and Digital Gaming
segment rose 42%, compared to a 5% decrease a year ago.