Hasbro Revenues Rise Even as Shoppers are ‘Watching Their Wallets’

Hasbro saw quarterly revenues rise amid delayed holiday orders and diminished spending among some consumers.

The toy and game maker reported earnings Thursday (Oct. 23) showing an 8% increase in revenue. This was driven in part by its Wizards of the Coast and digital gaming segments.

However, the company’s consumer products (CP) segment bore the brunt of trade challenges. Revenue was down 7% year-over-year amid some delays in orders from retailers.

Hasbro saw quarterly revenues rise amid delayed holiday orders and diminished spending among some consumers.

Hasbro estimates the total tariff impact for 2025 will be $60 million. Approximately $20 million will hit the third quarter. The company is actively restructuring its sourcing to reduce risk. CEO Chris Cocks detailed the long-term goal. He told analysts on an earnings call that “because of our proactive supply chain diversification initiatives, we expect that by year-end 2026, no single country outside the U.S. will represent more than a third of Hasbro’s supply chain.”

In terms of consumer behavior, Hasbro has seen a divergence in purchasing patterns across income brackets.

Cocks noted that the company is currently witnessing “a tale of two consumers.” He elaborated that the top 20% of households, especially in the U.S., “continue to spend pretty robustly” in fan and gaming segments. Meanwhile, “the balance of households are watching their wallets a bit more, a little bit more promotional and price sensitive.”

To address broader price sensitivity, approximately half of Hasbro’s items are priced below $20. This maintains an accessible price zone for consumers.

As PYMNTS wrote earlier this month, earnings reports from other companies have shown consumers behaving in a more careful fashion when it comes to spending. Meanwhile, research from PYMNTS Intelligence shows that the share of American consumers who live paycheck to paycheck is still high.

“In August, 68% of U.S. consumers reported that they were in this position, a number that leaves little room for error when an unexpected bill arrives,” PYMNTS wrote. “The average household’s liquid savings have declined by more than 10% in the past 16 months, leaving thinner cushions to absorb shocks.”

Meanwhile, rival toy and game company Mattel also released its third-quarter numbers earlier this week. CEO Ynon Kreiz said that retailers had begun stocking up on toys and games ahead of the holiday shopping season, having seen growing demand from shoppers.

Kreiz said the company’s U.S. business was challenged in the third quarter by a shift in ordering patterns made by retailers in response to the macroeconomic environment and tariffs. Still, orders from retailers picked up at the beginning of the fourth quarter.