12:59 PM EDT, 09/19/2025 (MT Newswires) -- Hasbro ( HAS ) and fellow toymaker Mattel ( MAT ) are expected to see a more fourth-quarter-weighted revenue amid a cautious retailer approach to inventory this holiday season given consumer uncertainty, BofA Securities said Friday.

The brokerage reduced its third-quarter earnings estimate for Mattel ( MAT ) to $1.02 a share from $1.08, taking into account a shift in revenue to the December quarter and higher sales adjustments pressure to gross margin. Analysts polled by FactSet are looking for $1.07.

For Hasbro ( HAS ), BofA projects a 3.5% consumer products revenue decline in the third quarter and a 1% increase in the succeeding three-month period, citing "similar retail dynamics," the brokerage said in a note to clients.

"We expect retailers to take a cautious approach to inventory this holiday given overall consumer uncertainty," BofA analyst Alexander Perry wrote. "We believe retailers are delaying orders and moving toward a just-in-time model, with one large mass retailer pushing out holiday shelf reset back by two months this year."

Mattel ( MAT ) shares were down 1.9% in Friday afternoon trade, while Hasbro ( HAS ) fell 1.8%.

BofA said it sees "an improved content slate" next year for both companies. Hasbro ( HAS ) is likely to benefit from "Spiderman," "Star Wars," and "Avengers: Doomsday," while Mattel ( MAT ) is seen benefiting from "Masters of the Universe," "Matchbox," "Toy Story 5," and the DC license in fall, according to the note.

In July, Mattel ( MAT ) resumed its financial guidance, saying it expected 2025 adjusted EPS in an updated range of $1.54 to $1.66 and net sales growth of 1% to 3%.

Also in July, Hasbro ( HAS ) upgraded its full-year revenue outlook, which called for a mid-single-digit increase in constant currency. "Despite a dynamic macro environment, the strength of our diversified business and cost productivity initiatives support our updated outlook," Chief Financial Officer and Chief Operating Officer Gina Goetter said at the time.

"We see (Hasbro's ( HAS )) diversification into video games, led by its 2026 launch of Exodus, as an ability to capitalize on a faster growth market, with the global video game market growing at (a high-single-digit percentage) since 2010, compared to (low-single-digit percentage) growth in the traditional toy market," Perry said Friday.

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