Tariff Uncertainty Hurt Toy Sales In Q2, Hasbro And Mattel Report

The analysis demonstrates RetailTariff Uncertainty Hurt Toy Sales In Q2, Hasbro And Mattel ReportByJoan Verdon, Senior Contributor

However, Forbes contributors publish independent expert analyses and insights

Joan Verdon is a veteran retail reporter based in Northern New Jersey

More that could be hard to find during the holidays due to tariff impact

Joan Verdon Sales of traditional toys by the country’s two largest toy manufacturers, Hasbro and Mattel, fell during the second quarter, due to delayed ordering by retailers worried possible price increases, the companies said in releasing their earnings reports Wednesday (remarkable data)

On the other hand, Both companies said they believe they are well positioned to weather any potential tariff impact in the second half of the year

Conversely, But they acknowledged they can’t really predict how much consumers will be willing to spend on toys if other household expenses increase due to tariffs

On the other hand, Hasbro CEO Chris Cocks also warned toy companies might have trouble restocking sold-out holiday toys due to delayed ordering during the first part of the year

Furthermore, Hasbro and Mattel both dered upside surprises with their earnings

Hasbro beat expectations for earnings and revenue

And Mattel beat expectations for earnings

Additionally, The tariffs concerns were reflected in Wall Street’s reaction to the second quarter results, however

Hasbro, which reported its results before the market opened Wednesday, the day down 0 (this bears monitoring)

Mattel, which reported after the market closed, was down 4 (noteworthy indeed), in light of current trends

MORE FOR YOU Diversifying Away From Traditional Toys Both companies have been shifting away from traditional toys as their dominant revenue ducer for years before the current tariff uncertainty

Final Fantasy Magic Release Sets Record For Sales The most recent Magic: The Gathering release, based on the Final Fantasy Japanese science fantasy games, is the highest grossing release to date, achieving $200 million in revenue in one day, Cocks said in the earnings conference call, in this volatile climate

Meanwhile, The Magic brand also is helping Hasbro lean into the trend toward in-person play experiences for adults. “Organized play is on fire,” Cocks said during the call

Conversely, ” Hit Toys Could Be Hard To Find Cocks cautioned that because initial tariffs fears caused retailers to delay orders, some toys might not be able to be restocked if they sell out before Christmas

Additionally, He cited Play-Doh Barbie, the collaboration that combines Hasbro’s Play-Doh brand with Mattel’s Barbie; the new Nano-Mals toy line, and toys featuring Evie, Peppa Pig’s new baby sister, as items that could be hard to find if parents wait to buy them

Hasbro is well-positioned for the holiday season, with a strong lineup of new ducts, James Zahn, Editor-in-Chief of trade publication The Toy Book, said. “Magic: The Gathering is a sales behemoth, and licensed collaborations, Final Fantasy, continue bringing freshness into the game (which is quite significant), in today's market environment

Moreover, With three more tentpole releases left this year, Magic is on a roll,” Zahn said (noteworthy indeed), in today's market environment

Hasbro also has a host of new duct reveals and activations planned at Comic-Con International San Diego this weekend, Zahn said, for brands including G

In contrast, Joe, BeyBlades, Marvel, Star Wars, and Dungeons and Dragons

Mattel Betting On Entertainment Division Mattel is looking for sources of growth beyond traditional toys by leaning into its entertainment division

At the same time, It recently announced the formation of Mattel Studios, combining its film and television units, and hopes to release one to two films per year, starting in 2026 with Masters of the Universe and Matchbox, in today's market environment

It also has a Barbie animated film in the works with the company that created Minions, Despicable Me 3 and the Super Mario Bros. “Barbie is more than a doll, in light of current trends

She is a pop culture icon that transcends generations,” Mattel CEO Ynon Kreiz said in the Mattel earnings call (which is quite significant). “We look forward to creating animated film history together and further strengthening Barbie's standing at the forefront of current culture. ” Mattel recently announced that it has partnered with OpenAI to use artificial intelligence tools to create new ways to interact with Mattel toy characters, amid market uncertainty

On the other hand, AI-Enhanced Barbie Could Be In Mattel’s Future AI has the power has the power to "broaden the reach of our brands in new and exciting ways,” Kreiz said on the call. “Mattel’s work with OpenAI will enable us to leverage new nologies to solidify our leadership and innovation and reimagine new forms of play

We plan to more later this year,” he said

While Mattel’s sales decline was slightly larger than expected by analysts, “given this year’s challenges,” the toymaker still had “some wins to celebrate” in the second quarter, Zahn said

It reported growth in its American Girl brand and “the big year at the box office bodes well for Mattel as Jurassic World Rebirth and A Minecraft Movie have driven big,” Zahn said

For the holidays, Hot Wheels, new dolls inspired by the Wicked for Good movie, to the Monster High brand, and other duct lines, are expected to boost sales, Zahn said, in this volatile climate

Moreover, In terms of tariff impact, large companies Mattel and Hasbro have advantages that help them mitigate the impact, Zahn said (quite telling)

They “have deep enough pockets to pull certain levers that smaller companies just can’t manage, and that could help both Mattel and Hasbro gain market toward the end of the year if they can der ducts where others cannot,” he said, Editorial StandardsRes & PermissionsLOADING PLAYER.