Hasbro Q1 Sales Up 13% to $1B, Shares Fall 8% on Cautious Outlook
Hasbro’s first-quarter net sales rose 13% year‐over‐year to $1.0 billion, while diluted EPS grew 41% to $1.47, beating estimates of $962.9 million and $1.20. Despite a 20-minute sellout of its $600 Ultimate Grogu collectible and strong Magic: The Gathering demand, shares fell 8% after the company maintained a cautious full-year outlook.
1. First-Quarter Financial Results
Hasbro reported first-quarter net sales of $1.0 billion, up 13% year-over-year versus consensus of $962.9 million, while diluted earnings per share rose 41% to $1.47 compared with estimates of $1.20.
2. Consumer Spending Resilience
CEO Chris Cocks highlighted that U.S. consumers are treating toys as small luxuries that deliver joy at a lower cost than other activities, driving robust demand despite elevated inflation and energy costs.
3. Ultimate Grogu Collectible
The company’s $600 Ultimate Grogu collectible sold out in approximately 20 minutes on its direct-to-consumer platform, underscoring strong fan engagement ahead of the new Star Wars release.
4. Outlook and Share Reaction
Shares declined 8% on the day as management maintained a cautious full-year outlook due to uncertainty in demand trends and normalization in Magic: The Gathering growth, with potential $50 million tariff refunds not included in guidance.