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Under mounting toy pressures, Hasbro has a secret sauce that Mattel hasn't matched
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Under mounting toy pressures, Hasbro has a secret sauce that Mattel hasn't matched

#Hasbro #Mattel #Wizards of the Coast #Magic: The Gathering #Toy Industry #Revenue Growth #Stock Performance #Digital Gaming

📌 Key Takeaways

  • Hasbro outperformed Mattel with 14% revenue growth in 2025 compared to Mattel's 1% decline
  • Hasbro's Wizards of the Coast division grew 45% and represents 88% of adjusted profits
  • Magic: The Gathering has been particularly successful with special sets like 'Final Fantasy' breaking sales records
  • Mattel is struggling with stagnant growth and declining sales of flagship brands while attempting to expand into digital gaming

📖 Full Retelling

In the competitive global toy market during 2025, Hasbro has significantly outperformed its rival Mattel, with revenue growing 14% to $4.7 billion compared to Mattel's 1% decline to $5.3 billion, largely thanks to the remarkable success of Hasbro's Wizards of the Coast division which includes Dungeons & Dragons and Magic: The Gathering. The financial divergence between the two toy giants is reflected in their stock performance as well, with Hasbro's shares climbing approximately 46% over the past 12 months to around $100, while Mattel's stock has plummeted more than 20% to approximately $17. Despite Mattel's larger revenue base, analysts note that the company has experienced stagnant growth for five consecutive years. The cornerstone of Hasbro's success has been its Wizards of the Coast division, which achieved a remarkable 45% revenue growth in 2025, reaching $2.1 billion. While this segment accounts for less than half of Hasbro's total revenue, it contributes an impressive 88% of the company's adjusted profits. The Magic: The Gathering trading card game has been particularly instrumental in this success, with special expansion sets like 'Final Fantasy' becoming the fastest-selling in the game's history, generating $200 million in sales in a single day. Hasbro has strategically expanded Magic's appeal by creating sets based on popular third-party intellectual property including 'Avatar: The Last Airbender,' Marvel's 'Spider-Man,' and 'Lord of the Rings,' effectively attracting new consumers from different fanbases into the Magic ecosystem.

🏷️ Themes

Corporate Competition, Gaming Industry Growth, Toy Market Transformation

📚 Related People & Topics

Wizards of the Coast

Wizards of the Coast

American game publisher

Wizards of the Coast LLC (WotC ; or, Wizards) is an American game publisher, mostly of fantasy and science-fiction games, and formerly an operator of retail game stores. In 1999, toy manufacturer Hasbro acquired the company and currently operates it as a subsidiary. During a February 2021 reorganiz...

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Hasbro

Hasbro

American multinational toy and entertainment company

Hasbro, Inc. (; a syllabic abbreviation of its original name, Hassenfeld Brothers) is an American multinational toy manufacturing and entertainment holding company founded on December 6, 1923 by Henry, Hillel and Herman Hassenfeld and is incorporated and headquartered in Pawtucket, Rhode Island. Has...

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Mattel

Mattel

American multinational toy manufacturing and entertainment company

Mattel, Inc. ( mə-TEL) is an American multinational toy manufacturing and entertainment company headquartered in El Segundo, California. Founded in Los Angeles by Harold Matson and husband-and-wife duo Ruth and Elliot Handler in January 1945, Mattel has a presence in 35 countries and territories.

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Deep Analysis

Why It Matters

Hasbro's stronger growth shows the importance of diversified gaming assets, while Mattel lags despite larger revenue. The shift highlights how toy companies must adapt to digital and licensed content to stay competitive.

Context & Background

  • Hasbro's Wizards of the Coast drives 45% revenue growth in 2025
  • Mattel's sales decline and stagnant growth contrast with Hasbro's gains
  • Digital gaming is a growing revenue source for both companies
  • Licensing of popular IPs like Star Wars and Disney fuels toy sales

What Happens Next

Hasbro plans new Magic sets in 2026 and continues expanding digital titles. Mattel is building its own digital unit and may benefit from upcoming film releases. Both companies will rely on licensed properties to boost sales

Frequently Asked Questions

Why is Hasbro outperforming Mattel?

Hasbro's Wizards of the Coast and digital gaming segments are growing faster than Mattel's traditional toy lines.

What new products is Hasbro launching?

Hasbro will release Magic sets based on The Hobbit, Teenage Mutant Ninja Turtles and Star Trek in 2026.

How is Mattel responding to digital trends?

Mattel is taking full ownership of its Mattel163 digital unit to develop mobile games tied to its brands.

Original Source
In this article MAT HAS Follow your favorite stocks CREATE FREE ACCOUNT watch now VIDEO 2:53 02:53 Why toymakers like Hasbro and Mattel need Hollywood CNBC Digital Original Video The gap is widening between rival toy makers Hasbro and Mattel — thanks in part to a 30-year-old trading card game. The toy giants have flip-flopped dominance in the space for decades, jockeying for the most coveted master licenses to put new fan favorites — Disney princesses and "Star Wars" characters among them — on store shelves. But as the industry recovers from a period of declining sales, Hasbro is the one winning over Wall Street. For the fiscal year 2025, Hasbro reported revenue gains of 14%, reaching $4.7 billion, while Mattel saw its net sales drop 1% to $5.3 billion. Though Mattel's revenue is larger than Hasbro's, its growth has been stagnating, according to Eric Handler, managing director and senior research analyst at Roth Capital Partners. "[Mattel's] revenue has been in a very tight range for five years now, and 2026, on an organic basis, is the same," he told CNBC. Mattel shares are down more than 20% in the last 12 months, trading at around $17. Meanwhile, Hasbro's stock is up roughly 46% over the same period, with shares trading at around $100. Of course, Hasbro's journey post-pandemic has not been without its own headwinds. The company's revenue took a hit when it divested its film and TV business, eOne . Also, its entertainment segment, which includes film and TV licenses, was deeply impacted by Hollywood's dual labor strikes in 2023. "Despite market volatility and a shifting consumer environment, we returned this company to growth in a meaningful way," Hasbro CEO Chris Cocks told investors during an earnings call earlier this month. Throughout these changes, one key piece of Hasbro's business has been steadily growing — Wizards of the Coast. A dash of Magic The Hasbro division includes Dungeons & Dragons, Magic: The Gathering and the company's portfolio of digital and ...
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Source

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