(Corrects paragraph 3 to say segment revenue rose 16%, not 28%, and revenue for “Magic: The Gathering” surged 23%, not 32%)
(Reuters) -Hasbro (HAS) 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.
Hasbro shares rose 3% in premarket trading on Wednesday.
The Play-Doh maker saw strong demand for its “Wizards of the Coast” and digital gaming segments for a second straight quarter, as its pivot to digital gaming helped add younger customers even as it struggles to revive interest in toy business.
For the second quarter, the company’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.
Hasbro’s turnaround efforts, including cutting 3% of its global workforce as well as diversifying its manufacturing and logistics footprint, have helped it reduce its reliance on China, from where it imports nearly half of its goods. It also has manufacturing hubs in Vietnam, India and Japan.
The company expects annual revenue to be up mid-single digits in constant currency terms, compared with prior predictions to be up slightly.
(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Arun Koyyur)
