Hasbro 2025 Q1 Earnings Strong Performance as Net Income Surges 68%
Wednesday, May 7, 2025 6:21 am ET
54min read Hasbro (HAS) reported its fiscal 2025 Q1 earnings on May 6th, 2025. The total revenue of Hasbro increased by 17.1% to $887.10 million in 2025 Q1, up from $757.30 million in 2024 Q1. Hasbro's earnings per share (EPS) rose 69.0% to $0.71 in 2025 Q1 from $0.42 in 2024 Q1, marking continued earnings growth. Over the past five years, the strategy of buying Hasbro (HAS) shares after a revenue drop quarter-over-quarter and holding for 30 days resulted in poor performance. The strategy's return was -2.51%, significantly underperforming the benchmark return of 83.12%. The excess return was -85.63%, and the CAGR was -0.51%, indicating substantial losses. The strategy also had a high maximum drawdown of -21.44% and a low Sharpe ratio of -0.04, reflecting significant risk and negative returns.
Revenue
In the first quarter of 2025, Hasbro reported a total revenue of $887.10 million, marking a 17.1% increase from the previous year. The revenue growth was primarily driven by the Wizards of the Coast and Digital Gaming segment, which generated $462.10 million. Consumer Products contributed $398.30 million, while the Entertainment segment added $26.70 million, and Corporate and Other accounted for no revenue.
Earnings/Net Income
Hasbro's earnings per share increased significantly by 69.0% to $0.71 in Q1 2025 from $0.42 in Q1 2024. The company's profitability also saw a substantial uplift, with net income rising 68.4% to $99.50 million from $59.10 million in the same period last year. This strong performance highlights Hasbro's successful strategies and market resilience.
Price Action
The stock price of Hasbro has edged down 0.18% during the latest trading day, has edged down 1.06% during the most recent full trading week, and has jumped 10.78% month-to-date.
Post-Earnings Price Action Review
In the past five years, Hasbro's strategy of buying shares after a quarterly revenue drop and holding them for 30 days has not performed well. This approach resulted in a negative return of -2.51%, drastically underperforming the benchmark return of 83.12%. The strategy's excess return was -85.63%, and the compound annual growth rate (CAGR) stood at -0.51%, indicating considerable losses. Additionally, the strategy experienced a high maximum drawdown of -21.44%, coupled with a low Sharpe ratio of -0.04, reflecting substantial risk and negative returns. These results suggest that the strategy was ineffective and carried significant financial risk over the observed period.
CEO Commentary
“Hasbro’s Playing to Win strategy is delivering in a challenging environment. We’re outperforming today and building for tomorrow through disciplined execution, standout partnerships like our extended Disney agreement, and future-focused bets that are already paying off,” said Chris Cocks, Chief Executive Officer of Hasbro. He highlighted strong revenue growth and profit lift in Q1, primarily driven by a strategic shift toward higher-margin businesses. Cocks emphasized that the strength of Wizards, licensing, and their asset-light model continues to offset tariff pressures, supporting margins and positioning the company for future success.
Guidance
For the full year 2025, Hasbro expects total revenue to increase slightly in constant currency. The company maintains an adjusted operating margin target of 21%-22% and anticipates adjusted EBITDA in the range of $1.1 billion to $1.15 billion. Given the ongoing uncertainty regarding tariffs, the guidance reflects a cautious yet optimistic outlook as Hasbro aims to leverage its strengths in core business investments while returning cash to shareholders and enhancing its balance sheet.
Additional News
Hasbro recently extended its long-running strategic relationship with Disney Consumer Products to continue creating toys and games for the iconic Star Wars and Marvel franchises. This agreement grants Hasbro continued global toy and board game merchandising rights, allowing them to develop a wide range of products for fans of all ages. In addition, the company announced that it returned $98 million to shareholders via dividends and reduced debt by $50 million in the first quarter of 2025. Hasbro also reported that it is making rapid changes to diversify its supply chain in response to tariff hikes, aiming to source 40% of its global supply outside China by the end of 2026.
Revenue
In the first quarter of 2025, Hasbro reported a total revenue of $887.10 million, marking a 17.1% increase from the previous year. The revenue growth was primarily driven by the Wizards of the Coast and Digital Gaming segment, which generated $462.10 million. Consumer Products contributed $398.30 million, while the Entertainment segment added $26.70 million, and Corporate and Other accounted for no revenue.
Earnings/Net Income
Hasbro's earnings per share increased significantly by 69.0% to $0.71 in Q1 2025 from $0.42 in Q1 2024. The company's profitability also saw a substantial uplift, with net income rising 68.4% to $99.50 million from $59.10 million in the same period last year. This strong performance highlights Hasbro's successful strategies and market resilience.
Price Action
The stock price of Hasbro has edged down 0.18% during the latest trading day, has edged down 1.06% during the most recent full trading week, and has jumped 10.78% month-to-date.
Post-Earnings Price Action Review
In the past five years, Hasbro's strategy of buying shares after a quarterly revenue drop and holding them for 30 days has not performed well. This approach resulted in a negative return of -2.51%, drastically underperforming the benchmark return of 83.12%. The strategy's excess return was -85.63%, and the compound annual growth rate (CAGR) stood at -0.51%, indicating considerable losses. Additionally, the strategy experienced a high maximum drawdown of -21.44%, coupled with a low Sharpe ratio of -0.04, reflecting substantial risk and negative returns. These results suggest that the strategy was ineffective and carried significant financial risk over the observed period.
CEO Commentary
“Hasbro’s Playing to Win strategy is delivering in a challenging environment. We’re outperforming today and building for tomorrow through disciplined execution, standout partnerships like our extended Disney agreement, and future-focused bets that are already paying off,” said Chris Cocks, Chief Executive Officer of Hasbro. He highlighted strong revenue growth and profit lift in Q1, primarily driven by a strategic shift toward higher-margin businesses. Cocks emphasized that the strength of Wizards, licensing, and their asset-light model continues to offset tariff pressures, supporting margins and positioning the company for future success.
Guidance
For the full year 2025, Hasbro expects total revenue to increase slightly in constant currency. The company maintains an adjusted operating margin target of 21%-22% and anticipates adjusted EBITDA in the range of $1.1 billion to $1.15 billion. Given the ongoing uncertainty regarding tariffs, the guidance reflects a cautious yet optimistic outlook as Hasbro aims to leverage its strengths in core business investments while returning cash to shareholders and enhancing its balance sheet.
Additional News
Hasbro recently extended its long-running strategic relationship with Disney Consumer Products to continue creating toys and games for the iconic Star Wars and Marvel franchises. This agreement grants Hasbro continued global toy and board game merchandising rights, allowing them to develop a wide range of products for fans of all ages. In addition, the company announced that it returned $98 million to shareholders via dividends and reduced debt by $50 million in the first quarter of 2025. Hasbro also reported that it is making rapid changes to diversify its supply chain in response to tariff hikes, aiming to source 40% of its global supply outside China by the end of 2026.
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