Monopoly Maker Hasbro Lands On Go As Gaming Propels Revenues And Stock

So despite tariffs and its reliance on Chinese-made products Monoploy maker Hasbro did not go straight to jail but rather came up trumps as its quarterly results today beat Wall Street estimates by some margin.

As the Rhode Island-headquartered company works to diversify manufacturing away from China, where it currently sources around half its product lines, its strong performance came largely thanks to Hasbro’s robust gaming segment, sending the toymaker’s shares up over 15% in early trading.

That has helped reverse some of the losses in its share price over the past 12 months, with Hasbro’s stock price off just under 7% in the past year but recovering well after a sharp drop following the ‘Liberation Day’ tariff announcements.

Indeed, despite uncertainty related to President Trump’s tariffs, the Play-Doh to Peppa Pig maker said that it would not change its annual forecasts and added that for its latest three-monthly report the current steep levies had not had any material impact on earnings because they came into effect after the reporting period.

Hasbro Looks To Diversify

However Hasbro, which sources about half of its toys and games sold in the U.S. from China, did admit that it was reassessing its logistics routes and the location of its manufacturing bases as the toymaker accelerates efforts to diversify sourcing and “meaningfully” bring down its exposure to China, the company said on a post-earnings call.

What has paid dividends for Hasbro is its ongoing shift toward its digital and licensed gaming division. That has helped attract younger customers after its traditional toy business has struggled with weaker demand for about three years.

The company’s revenue in the quarter to March 30 was up 17.1% to $887.1 million, compared with the average analyst estimate of $771.2 million, as Hasbro’s turnaround efforts, which have included simplifying its supply chain and maintaining leaner inventories, also boosted the company’s adjusted operating margin to an impressive 25.1%, which up 5.5%.

On an adjusted basis, the company earned $1.04 per share, significantly beating Wall Street consensus estimates of $0.67.

Hasbro Franchise-First Strategy

Through its franchise-first approach, Hasbro brands include Magic: The Gathering, Dungeons & Dragons, Monopoly, Hasbro games, Nerf, Transformers, Play-Doh and Peppa Pig, as well as a range of partner brands.

Hasbro also relaunched retro cuddly electronic toy Furby just under two years ago in a bid to capitalize on the growing nostalgia market and to mark the character’s 25^th anniversary,

“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, Hasbro Chief Executive Officer of the latest results.

“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,” added Gina Goetter, Chief Financial Officer and Chief Operating Officer at Hasbro.