Toys to Retirement Weekly Wrap-Up #28
Hello friends,
Hope everyone had a lovely Easter. We are officially heading into “no upcoming holiday that promotes toy buying” season. This is historically when stuff really slows down for me which is why I plan most of my vacations over the next few months. There will still be plenty of buying opportunities, but this year we are obviously in uncharted territory with tariffs - who knows what the shelves will look like in a month or two?
Hasbro Earnings Call
Some highlights from Hasbro’s successful earnings call yesterday:
The Final Fantasy Magic: The Gathering set is on track to be the best-selling set of all time on day one, as stated in the Q1 2025 earnings call. (I still have not been able to grab the collector edition booster boxes, they sell out immediately)
Extended multi-decade licensing agreement with Disney for Marvel and Star Wars properties (Marvel Legends and Black Series are here to stay)
SKU rationalization is accelerating, with a focus on prioritizing $9.99 and $19.99 price points in Q1 2025.
Wizards of the Coast has low tariff exposure. With sub $10 million in expected duty for the year. Most of our domestic supply is produced in North Carolina and Texas (Magic the Gathering)
Ultimately, tariffs translate into higher consumer prices. Potential job losses as we adjust to absorb increased costs, and reduced profits for our shareholders. Our guidance is unchanged supported by our robust games and licensing businesses and our strategic flexibility but prolonged tariff conditions create structural costs and heightened market unpredictability. Hasbro, Inc. produces a substantial amount of product in the US and around the world, has served as an engine of local jobs, creativity, and innovation for over a hundred years. And licenses to hundreds of American companies employing tens of thousands of American workers. Across toys, games, entertainment, experiences, and more. As such, we fully endorse the toy association's advocacy for zero tariffs on toys and games globally
You can read the full transcript here: https://www.fool.com/earnings/call-transcripts/2025/04/24/hasbro-has-q1-2025-earnings-call-transcript/
If you believe these tariffs are temporary, Hasbro may not be a bad stock to buy right now. Would’ve been much better before this earnings call, but any ease of tariffs will likely cause this stock to jump.
Buying with Conviction
Earlier this week I dropped a highly requested article answering the question “how do you know when to go deep?” I provide a list of factors I take into consideration before making a big buy. The last one may shock you, but is arguably my most profitable factor. Check it out here:
Tariffs hitting, but Funko getting hit BAD
Entertainment Earth is known for having the most cost effective relationship with Funko, so to see their pre-order prices jump about 50% is WILD. That doesn’t even factor in shipping, the protective box, or extra prep time/fee. I pretty much have been done with Funko since late last year, but this pretty much seals the deal. A main-line, over-produced Funko will now need to sell for about $25 for me to even like it, but a lot of the time Funko struggles to even break $20. Worst hit I’ve seen so far from tariffs for sure.
Wednesday Season 2
Season 2 will release in two batches, August 6 and September 3. Season 1 saw a large increase in demand for merch, and I expect this season to be no different.
Here’s hoping that this doll (which was supposed to be limited edition… allegedly) will finally die!
Beautiful LEGO GWP available
Second in the diorama series of GWPs — a coral reef! $150 is always annoying to spend this time of year on LEGO that still isn’t retiring for another 8 months, but GWPs like this can make it worth it if you have your eyes on any exclusives. Lasts through the 29th!
Life-size Eeveelutions Plushes revealed
Pokemon is on a roll lately, and it’s no doubt they’ll crush it with these. Am I willing to take a bet on investing in these? Honestly — I think so. At least Espeon and Umbreon. They’re two of the most popular Pokemon ever, and historically these life size plushes have been limited edition.
Here are some comps of the recently released life-sized Gardevoir plush that released at $500
Rumor is they’ll be around $300 once they hit the US, not sure if that will change with tariffs. But $300 into $500+ for a local sale seems very possible with Espeon and Umbreon.
Definitely something to think about when these release.
Going to wrap it up there, hope everyone has a lovely end to April!
I had thousands of Funko Pop units just get hit by this tariff at EE. I cancelled ALL of them. Looks like I’ll be exiting the Funko Pop market. There isn’t enough margin on Amazon to absorb a 50% hike.