Toymakers Hasbro And Mattel Lose Sales Steam, But Retail Bulls Hold Firm

Retail investors maintained a bullish view on toymakers Hasbro (HAS) and Mattel (MAT) after their quarterly earnings on Wednesday, which reflected differing levels of sales pressure from economic headwinds, including U.S. tariffs.

Harbro reported a 1% drop in sales in its second quarter, which was far smaller than expected, and raised its full-year revenue outlook. The top line came in at $980.8 million, driven by strong demand for its "Magic: The Gathering" games, versus the $880.4 million expectation.

The company, known for its Monopoly board games and Transformers action figures, booked a $1 billion goodwill impairment charge in the consumer products segment as retailers delay buying holiday inventory due to tariff pressures.

Shares of Hasbro, which reported before the markets opened, fell 1% in Wednesday's session.

Rival Mattel delivered underwhelming quarterly results, causing its stock to drop 4% in after-hours trading.

Mattel, known for its Barbie dolls and Hot Wheels cars, reported a wider-than-expected 6% drop in net sales to $1.02 billion in the last quarter. The company also highlighted significant weakness in the North American market as retail partners adjust their purchasing strategies.

Mattel slightly lowered its 2025 sales and adjusted profit estimates.

On Stocktwits, the retail sentiment was 'bullish' for both Hasbro and Mattel stocks. HAS has risen 37.4% year-to-date, while MAT has increased 14%.

Part of the optimism stems from improved dynamics between the U.S. and China, the primary manufacturing hub for most toys. Last month, the two countries announced a truce that would lower the effective tariff rate on Chinese exports to the U.S. to 55%, a significant reduction from the previously proposed 145%.

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