“Despite all of the macro noise in the quarter, we stayed true to our superpower, inspiring a lifetime of play,” Hasbro CEO Chris Cocks said during a Tuesday earnings call. “We do that by building deep, lasting fandom around great IP.”
The company’s Magic: The Gathering trading card franchise is “the clearest proof point,” Cox said, with revenues exceeding $600 million for the first time and increasing 34%, surpassing a record set in the second quarter.
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During the question-and-answer segment of the call, management was asked about Hasbro’s consumer product business, which saw revenues climb 4% thanks to properties like Marvel, KPop Demon Hunters and Transformers. The company expects growth of between 1% and 3% for this segment for the full year.
“I think our consumer products division inside of the midterm can do better than low single digits,” Cox said, pointing to a 2027 filled with “new licenses,” such as the 50th anniversary of the Star Wars franchise, new movies from Marvel and a new Harry Potter TV series.
While consumer confidence has been down nationwide, Hasbro said it sees no reason to worry heading into the holiday shopping season.
“We’re continuing to see a pretty resilient consumer, and especially given how we’ve shifted our portfolio and our portfolio mix to those GEM Squared categories,” Chief Financial Officer and Chief Operating Officer Gina Goetter said. “We’re definitely seeing momentum there. So, there’s nothing that we see going into the holidays that has us concerned about the consumer.”
The spending outlook for the holiday season “rests on two competing forces,” PYMNTS reported Oct. 8. Employment expectations are robust enough to fuel continued consumption, while higher expected prices and dwindling savings leave households with less flexibility over how that money is allocated.
“Holiday spending could therefore remain firm in dollar terms while becoming more selective underneath the aggregate figure,” the report said. “Consumers facing higher grocery, rent, medical and fuel costs have fewer dollars left after recurring expenses.”
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