01:31 PM EDT, 07/23/2025 (MT Newswires) -- Hasbro's ( HAS ) second-quarter revenue beat Wall Street's estimates, though the toymaker said Wednesday that it faced order delays within consumer product operations due to uncertainty surrounding tariffs.

Revenue dipped 1% year over year to $980.8 million for the quarter ended June 29, but exceeded the FactSet-polled consensus estimate of $880.4 million. Adjusted per-share earnings rose to $1.30 from $1.22 a year earlier, compared with analysts' $0.78 view.

The results included a 16% slide in the consumer products segment's revenue to $442.4 million, driven by sharp declines in Latin America and North America. Sales within the Wizard of the Coast and digital gaming division rose 16% to $522.4 million.

"As anticipated, (consumer products) sales were down in the quarter, particularly in North America, where our retail partners made a shift in ordering from direct imports to domestic," Chief Executive Chris Cocks said at an earnings call, according to a FactSet transcript. "Given the uncertainty around tariffs over the last few months, we expect to make up much of this delayed ordering in (the third quarter) and into (the fourth quarter) as sales ramp into the holidays."

The company booked a $1 billion goodwill impairment charge in the consumer products segment to reflect the impact of tariffs.

"We're also seeing downstream impacts from trade uncertainty across the retail landscape," Chief Financial Officer Gina Goetter told analysts. "Many retailers are delaying holiday inventory builds and pushed shelf resets into (the third quarter), both of which weighed on (second-quarter) consumer products revenue and are requiring us to remain agile in the second half."

For 2025, the company said it now expects revenue to be up mid-single digits at constant currencies, compared with a prior estimate that called for slight growth. Analysts are looking for full-year sales of $4.23 billion, up from $4.14 billion reported for 2024.

The net expected impact of tariffs is now seen at the lower end of the previously-disclosed range of $60 million to $180 million, according to Goetter. The company plans to reduce its US toy and game sourcing exposure to China to less than 40% by 2027 from about 50% currently, she said.

US Treasury Secretary Scott Bessent reportedly said Tuesday that officials from China and the US will discuss a potential extension to the tariffs deadline when they meet next week in Stockholm. The two sides agreed to a 90-day suspension of most tariffs on each other's goods in May.

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