Feb 10 (Reuters) – Play-Doh maker Hasbro on Tuesday forecast annual revenue growth below Wall Street estimates, even after reporting a strong holiday quarter, as consumers remain hesitant to spend on non-essential items.
Several consumer-facing companies have flagged tepid spending on discretionary items such as toys, electronics and apparel, as low to middle-income consumers remain under pressure from rising product prices tied to U.S. President Donald Trump’s import tariffs.
Hasbro, however, managed to beat fourth-quarter revenue estimates, as people stretched their budgets to buy gifts for their loved ones during the holidays.
“2025 reflected strong operational execution, driven by progress on our transformation and cost savings initiatives. Wizards was a standout, anchored by record MAGIC revenue,” said CFO Gina Goetter.
Fourth-quarter revenue in its “Magic: The Gathering”, a digital gaming segment, more than doubled, compared with a 19% decline a year ago.
The company’s total revenue came in at $1.45 billion, above analysts’ average estimate of $1.26 billion, according to data compiled by LSEG.
“Competition is strong within the toy industry and demand has been stable but weak in recent years. We would expect small price increases for the company’s strongest brands,” Zachary Warring, analyst at CFRA Research, said.
Hasbro reported a profit of $1.41 per share, compared with a loss of 25 cents per share a year ago.
On an adjusted basis, it reported a profit of $1.51 per share in the fourth quarter, compared with estimates of 96 cents.
Shares of the company were up about 2% in premarket trading after Hasbro also announced a $1 billion share repurchase program on Tuesday.
Hasbro expects annual revenue to grow in the range of 3% to 5%, compared with analysts’ average estimate of a 5.16% rise.
(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Shinjini Ganguli)
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