Hasbro Anticipates Up to $300 Million Impact From Tariffs

Toy and gaming company Hasbro saw a revenue increase in the first quarter, but the ever-evolving tariff situation is making growth strategizing tricky.

Net revenues reached $887 million in the first quarter, a 17% increase fueled by a 46% surge by Wizards of the Coast and licensed digital gaming, according to a Thursday (April 24) earnings release. Monopoly Go contributed $39 million of revenue alone in the quarter.

Adjusted operating profit rose to $222 million, up $74 million over the previous quarter, per the release. The company also generated $138 million in operating cash flow.

Although the company said in the release that “tariffs had no material impact on Q1 results due to timing of implementation,” Hasbro Chief Financial Officer and Chief Operating Officer Gina Goeter said during an earnings call that the company anticipates a $100 million to $300 million gross impact from tariffs in 2025.

“Factoring in all the mitigating levers, we estimate that the net profit impact in 2025 to be between $60 million and $180 million,” she said during the call. “The range in outcomes is dependent on final trade policy, customer order patterns and consumer behavior.”

Because about half of the company’s toy and game volume originates in China — a primary target of U.S. trade policy — some sourcing diversification will be in order, Goeter said.

“China will continue to be a major manufacturing hub for us globally in large part due to specialized capabilities developed over decades,” she said during the call. “In parallel, we’re partnering closely with our customers to manage inventory flows and work through a range of pricing strategies tailored to different trade outcomes and protect key price points.”

Hasbro CEO Chris Cocks said during the call that the company is accelerating a “$1 billion cost-savings plan to offset tariff pressures internally.”

“While targeted pricing actions remain likely, we are prioritizing key price points and strengthening retail partnerships,” he said. “We will work to capture market share and shelf space through our growth and optimized brands at critical consumer-friendly price points, particularly $9.99 and $19.99.”

Hasbro is maintaining its expectations for financial performance for the entire year,” Goeter said during the call.

“While we are dealing with a wide range of potential tariff, retailer and consumer outcomes, our games business and our strategic flexibility give us options,” she said.