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.
AuthorJul 24, 2025, 07:42am EDTPlay-Doh Barbie, a Hasbro toy resulting from a rare collaboration with Mattel, is one of the toys.
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). At the same time, 9%, at $76, given the current landscape.
Mattel, which reported after the market closed, was down 4 (noteworthy indeed), in light of current trends.
In contrast, Hasbro’s net sales were down 1%, less than analysts expected, while Mattel suffered a greater than expected revenue drop of 6%.
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.
Hasbro’s second quarter earnings report again underscored the wisdom of its 1999 purchase of gaming publisher Wizards of the Coast.
The Wizards of the Coast and digital gaming had revenue growth of 16% during the quarter, while the consumer ducts segment, which includes traditional toys, decreased by 16%.
On the other hand, Meanwhile, Magic: The Gathering, a collectible card game Hasbro acquired when it bought Wizards of the Coast, has seen particularly explosive growth in recent years, with revenue up 23% during the second quarter.
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.
Additionally, “We saw a nearly 40% year-over-year increase in unique players during the first half of 2025.
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.