Hasbro raised its annual revenue and profit forecasts, while Mattel reaffirmed its full-year guidance after beating quarterly sales estimates — a split that underscores how differently the two toy giants are navigating the post-pandemic landscape.
Hasbro's Digital Gaming Lift
Hasbro cited resilient demand for digital gaming and strength in Magic: The Gathering as reasons for the upgraded outlook. The company's stock trades near $143.75, while the S&P 500 sits at 144.93 on a rebased index starting at 100 in October 2024. Mattel shares, by contrast, are down 25% for the year.
Mattel's Tariff and Spending Pressures
Mattel reported net sales of $1.12 billion for the quarter, beating the $1.10 billion analyst estimate compiled by LSEG. But the company kept its full-year guidance unchanged: adjusted earnings per share between $1.27 and $1.39, and sales growth of 3% to 6%. That forecast excludes any benefit from potential US tariff refunds.
Jefferies analysts noted that tariff pressure and heavier brand spending could limit how much of Mattel's revenue growth reaches the bottom line. CEO Ynon Kreiz defended the strategy, saying the company is executing its multi-year plan to grow IP-driven play and family entertainment.
Spider-Man Boost for Hasbro
Hasbro holds the Marvel toy license, and the recent release of Spider-Man: Brand New Day opened to a record $360 million domestic weekend. That kind of box-office performance typically drives demand for action figures and playsets, giving Hasbro an extra tailwind that Mattel lacks.
Investors will watch for clarity on US tariff policy, which could affect Mattel's bottom line if refunds materialize. The company's next quarterly report will show whether it can convert sales growth into profit gains without relying on those potential refunds.
