Hasbro boosts annual forecasts on digital gaming demand

(Reuters) -Hasbro raised its annual revenue and core profit forecasts on Thursday, betting on holiday season sales and demand for its digital gaming segment, even as macroeconomic uncertainties cast a gloom on spending among American shoppers. Shares of the company, which also beat quarterly revenue estimates, were up about 3% in premarket trading. The toymaker's digital titles, including "Magic: The Gathering", helped offset softness in its traditional toy business, which faces pressure from weak consumer demand amid persistent inflation and the Trump administration's volatile trade policy. The company forecast fiscal-year 2025 revenue to grow by high single digits, compared with prior expectations of mid-single-digit rise and adjusted EBITDA – earnings before interest, taxes, depreciation, and amortization – to be between $1.24 billion and $1.26 billion, compared with the $1.17 billion to $1.20 billion range forecast earlier. The toy industry, which relies heavily on its manufacturing hubs in regions including China, has taken a significant hit from U.S. President Donald Trump's sweeping tariffs, with the recent threat of a 100% duty on Chinese goods threatening to further pressurize the industry.  "We managed tariff volatility with agility, protected margins through cost productivity and pricing discipline, and continued to advance our transformation initiatives," Gina Goetter, chief financial officer, said in a statement. The company's quarterly revenue of $1.39 billion beat analysts' average estimate of $1.34 billion, according to data compiled by LSEG. Revenue in its Wizards of the Coast and Digital Gaming segment rose 42%, compared to a 5% decrease a year ago. Peer Mattel, however, posted third-quarter revenue and profit below expectations on Tuesday, as retailers worried about an uncertain economic outlook delayed orders for "Barbie" and other toys, hurting demand for the Hot Wheels owner. (Reporting by Neil J Kanatt and Prerna Bedi in Bengaluru; Editing by Pooja Desai)

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