(Reuters) -Hasbro raised its annual revenue forecast on Wednesday, as the toymaker leans on strength of “Magic: The Gathering” games and cost-cutting efforts to weather the impact from mounting economic and tariff uncertainty.
The company’s shares rose about 3% in premarket trading as the Monopoly maker also beat expectations for second-quarter results.
The Play-Doh maker saw strong demand for its “Wizards of the Coast” and digital gaming segments for a second straight quarter, benefiting from its pivot to digital gaming even as it struggles to revive interest in its toys.
In the second quarter, Hasbro’s revenue in “Wizards of the Coast” and digital gaming segment rose 16% due to momentum in “Magic: The Gathering”, whose revenue surged 23% driven by growth in tabletop.
The company’s turnaround efforts through job cuts and by diversifying manufacturing and logistics footprint, have helped it depend less on China, from where it imports nearly half of its goods, as it navigates tariff uncertainty.
Hasbro also has manufacturing hubs in Vietnam, India and Japan.
“Despite a dynamic macro environment, the strength of our diversified business and cost productivity initiatives support our updated outlook,” finance chief Gina Goetter said.
Hasbro expects annual revenue to be up mid-single digits in constant-currency terms, compared with prior predictions to be up slightly.
It reported a net loss of $855.8 million, or $6.10 per share, compared to a profit of $138.5 million, or 99 cents a year ago, due to a $1 billion non-cash charge in its consumer products segment triggered by new tariffs.
On an adjusted basis, Hasbro earned $1.30 per share, compared with the market expectation of 78 cents.
(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Arun Koyyur)
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