A：The highlights of Hasbro's first quarter 2026 earnings report include strong performance across revenue, profit, and margin. Net revenue grew by 13% year over year to $1 billion, with adjusted operating profit increasing 29% to $287 million and adjusted earnings per diluted share rising 41% to $1.47. The quarter was marked by robust momentum in the Magic: The Gathering franchise, including the best-selling premiere set of all time and record engagement in organized play. The company's focus on Gme-Square categories and structural advantages of these categories contributed to above-industry growth and share gains. Looking ahead, the company is optimistic about upcoming events and product launches.

A：In the first quarter, the Magic: The Gathering franchise achieved several notable milestones. The 'Landspire Eclipse' debuted as the best-selling Magic: The Gathering premiere set of all time and delivered the highest engagement in organized play since the onset of the pandemic. Additionally, the franchise expanded its reach beyond tabletop games with record demand in digital platforms and live experiences. The success was not limited to tabletop games, as AGI Con Las Vegas sold more than 23,000 badges, making it the largest Magic event ever, with a similar trend observed in Magicon Amsterdam.

A：Hasbro's consumer products segment is showing positive trends, with momentum carried over from the first quarter into the second. The segment is focused on growing through Gme-Square categories, which include gamified entertainment-driven products that are multi-purchase and multi-generational. These categories have demonstrated above-industry growth, and the company has gained share in key categories. The outlook for the year is to continue seeing positive trends and to capitalize on the structural advantages of these categories.

A：Hasbro is anticipating several major film and licensing releases that are expected to significantly impact its consumer products. These include 'Star Wars' returning to theaters, 'The Mandalorian' with 'Grogu', and a strong line-up of product offerings such as 'Disney and Pixar's Toy Story 5', 'DC Superheroes Brand New Day', and 'Marvel Studios' Avengers Doomsday'. Early demand for 'ultimate Grogu' is positive, and there are also plans for new product launches by 'Plato' and 'K-pop Demon Hunters'. These are expected to create substantial opportunities across consumer products.

A：Based on the performance in the first quarter, Hasbro's financial outlook for the coming period appears positive. The company delivered a strong start to 2026 with Q1 results tracking revenue, profit, and margin targets. Net revenue of $1 billion and adjusted operating profit of $287 million indicate robust financial performance. Adjusted earnings per diluted share of $1.47 and a 29% increase in adjusted operating profit reflect strong operating leverage and disciplined execution. Furthermore, cost savings initiatives are on track, with $37 million delivered in Q1 towards a full-year commitment of $150 million, contributing to a robust financial position.

A：The company generated $338 million in operating cash flow, funded $50 million in strategic investments, returned $99 million to shareholders via dividend, and initiated share repurchases under a new program. They also issued $400 million of new notes to repay higher rates, longer dated debt.

A：The company is well positioned to absorb and offset the impact of rising oil costs across the business, including impacts on freight, resin, and packaging costs. They have several actions underway, such as freight optimization, mix management, and operating spend reductions to mitigate the impact. The company is maintaining guidance for the year with expectations of consolidated revenue growing 5% year over year on a constant currency basis, and adjusted operating margins of 24% to 25%.

A：Wizards is expected to deliver mid single-digit revenue growth with operating margins in the low 40% range. Consumer products are forecasted to grow low single digits for the year with adjusted operating margins in the 6 to 8% range. These forecasts reflect the impact of lower tariff expense offset by higher oil-related input costs and continued productivity and pricing mix support. The operating margin is expected to strengthen as the year progresses due to volume leverage and productivity improvements.

A：The company's capital allocation priorities remain unchanged, focusing on investing in the business, particularly in high-return growth opportunities led by Wizards Digital Gaming and Licensing. The company is also focused on paying down debt, maintaining a healthy balance sheet, and returning cash to shareholders through dividends and share repurchases.

A：The cyber incident resulted in additional operating expenses of approximately $20 million for remediation, which are one-time and不影响调整后的EBITDA. Consumer products revenue is expected to be delayed by $40 to $60 million from Q2 to the back half of the year. There is also an expectation for some receivables to shift from Q2 into Q3, impacting cash flow. These impacts are embedded in the company's guidance.

A：The company views its first-quarter performance as a clean foundation, with capital allocation priorities that are clear and execution ongoing. Wizards is providing growth momentum, consumer products are stable and improving, and cost discipline is translating into real margin performance. The company is managing through a dynamic macro environment and changing consumer patterns with clarity and focus, and remains fully committed to delivering on its full-year guidance.

A：The second quarter is expected to see consumer products revenue growth of approximately 5% which is now projected to be in the high single digits due to a delay in revenue recognition from the cyber incident. Previously, there was an expectation for consumer products to grow in the low double digits. For the second quarter, the guidance now indicates a different trajectory for revenue growth. However, the company is pleased with the first quarter's performance. Regarding Wizards, the company is not providing specific revenue or profit margin commentary for the second quarter.

A：Wizards is anticipated to have robust growth in Q2, following a strong previous quarter. Q3 and Q4 are expected to see more moderated growth rates.

A：The company has filed a tariff claim of roughly $50 million. However, the timing of any refund has not been given a timeline and is not embedded in the company's outlook for the year.

A：Cash flow from operations in Q2 saw a $100 million year-over-year increase, largely due to strong Magic sales. Some of the Q2 cash flow is expected to come into Q3, resulting in lower operating cash flow in July, which is then expected to recover and pick up as the year progresses into Q3 and Q4.

A：Yes, the company is definitely seeing strong momentum with consumers who have previously engaged with Magic through Beyond the Collab. This is evidenced by the third highest year-on-year sales of backflow sales in one quarter, which signifies the creation of new Magic players and a virtuous cycle for the company.

A：For the second half of the year, the projected growth rate for Wizards is expected to be low single digits. This reflects the comparison against strong prior year results and indicates a more moderated growth rate.

A：The network breach has impacted operations as the company was working through the breach since the end of March, with a priority on getting financial systems back online to report earnings and file their Q. There are no specific details on product categories or factories that were affected, but the priority is on restoring operations and ensuring no further delays that would impact product availability, especially with timing-sensitive products like Spider-Man or Star Wars.

A：Card stock availability and pricing are challenges, especially given that trading cards are a hot category and new entrants are increasing demand. However, the company has long-standing and diversified supply chain relationships with multiple sources from different countries, which helps manage the situation. While supply is constrained, particularly for quick-selling items, the company is extending the time that products stay in their inventory system to accommodate patient consumer behavior.

A：In 2025, the categories in which the company's products are growing very quickly saw a growth of about 22%, whereas the balance of the toy industry declined by 3%. Retailers tend to have fairly liberal open to buy orders when they see growth in categories and brands with specific demographics.

A：The company started the year with pretty healthy inventories, both owned and retail, and this position has been maintained as they move through the first quarter, with the addition of the entertainment fleet, putting them in a good position with their retailers.

A：Oil-related cost pressure from rising resin and packaging costs is expected to impact the back half of the year, with a projected impact of about $30 million in consumer products, assuming oil prices stay around $100 per barrel. The company is mitigating this pressure with pricing mix productivity actions, some favorability from tariffs, and by accelerating cost savings and productivity within operating expenses.

A：Ninja Turtles and flrain have both added to the outperformance for the quarter, with flrain significantly outperforming the prior best-selling first-party set. The contribution of these products to Q2 Magic revenue is expected to be substantial.

A：The deal with the Walt Disney Company to include Marvel and Spiderman on Magic products and future Marvel sets is seen as important for ensuring one-to-one compatibility between hobby shops and online play. This is expected to be a tailwind for digital Magic and the overall Magic ecosystem.

A：The new digital format of Magic, both on the existing Magic Arena and other potential formats, is expected to lean into insights that have driven the overall ecosystem, such as more universes beyond, collectability, tradability, and socially oriented multiplayer play. These new iterations are expected to roll out over the next couple of years.

A：The success with St Haven and other launches has not significantly altered the company's thoughts on the mix of universes beyond versus owned IP sets. The current mix is a combination of creative inspiration, audience feedback, availability, and release cadences, and the company believes it is in a decent place regarding this balance.

A：The company views Monopoly Go as a significant success, with the scope league team generating strong engagement and contributing to Hasbro's bottom line. It is comparable to having a couple of blockbuster movies worth of incremental licensing and product sales every year, and the partnership with scoley is greatly appreciated.