Hasbro CEO Warns Of Layoffs, Up To $300M Hit From Trump Tariffs – But Stock Surges On Q1 Earnings Beat

synopsis

Hasbro (HAS) shares surged as much as 16% in afternoon trade on Thursday after the company reported first-quarter earnings that beat expectations and maintained its full-year outlook.

However, the toymaker cautioned that continued U.S. tariffs on Chinese imports could trigger significant cost pressures and potentially lead to job cuts.

The company reported earnings per share of $1.04, surpassing the $0.67 consensus estimate from Koyfin. Revenue rose 17% year-over-year to $887.1 million, also topping expectations of $771.1 million.

CEO Chris Cocks said the company’s new "Playing to Win" strategy, designed to drive consistent revenue growth through 2027, is starting to show results despite ongoing macroeconomic headwinds.

“While no company is insulated, Hasbro is well positioned,” Cocks said on the earnings call, citing strength in its games and licensing segments.

Still, the company warned of growing exposure to trade policy risks. “Our forecast assumes various scenarios for China tariffs, ranging from 50% to the rate holding at 145% and 10% for the rest of world,” said CFO and COO Gina Goetter. 

She estimated the tariffs could result in a $100 million to $300 million gross impact across Hasbro’s operations in 2025 before any mitigating actions.

Cocks added that “prolonged tariff conditions create structural costs and heighten market unpredictability” and could lead to “potential job losses as we adjust to absorb increased costs and reduced profit for our shareholders.”

Despite the tariff headwinds, Hasbro maintained its full-year forecast of slight revenue growth and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $1.1 billion to $1.15 billion, citing flexibility in its supply chain and cost management efforts.

Separately, the company extended its licensing agreement with Disney, ensuring continued rights to manufacture toys linked to the Marvel and Star Wars franchises.

Hasbro’s stock is down 4% over the past 12 months but has added about 7% since the start of 2025.

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