Megan Alexander

Goetter provided clear phasing: CP Q2 growth moves from expected double-digit to low single-digit due to cyber shift, with most of $40-60M moving to Q3. Wizards Q2 expected to be robust behind Strixhaven and Marvel Super Heroes.

Cocks confirmed it is standard practice to hold guidance after Q1, citing strong tailwinds but also headwinds from oil costs and tariff uncertainty. Goetter added cyber remediation is still in progress.

Cocks described Hasbro's hedgehog concept: uniquely engaging consumers from age 2 to 99. Partners choose Hasbro for multigenerational reach. Goetter confirmed 2026 as CP inflection point with growth continuing into 2027-2028.

Cocks cited distribution growth (WPN up 20% last year, double-digits again in 2026), player growth (organized play 20%+ but casual growing faster), and stickiness driving backlist. Goetter noted most growth front-half loaded due to Q4 comp.

Cocks noted CP will see toy growth offset by MY LITTLE PONY licensing comp. Goetter detailed Wizards raise driven by revenue momentum; CP shipments expected to outpace POS creating margin leverage.

Goetter confirmed unchanged priorities: invest in growth, dividend, debt paydown. Still sees opportunity to bring leverage below 2.5x for more optionality. Will update in 2026.

Goetter acknowledged over-delivery vs February targets but declined to update midterm outlook. Noted tariff net impact expected bigger in 2026-27 as a headwind not known in February.

Cocks cited excellent user metrics, savvy Scopely partnerships (Star Wars collab), and lower-than-expected user acquisition costs. Goetter guided $12-14M/month for back half, up from prior $10M.

Cocks confirmed incremental 2026 tariff exposure if duties persist (first 4-5 months deferred in 2025). Also noted supply chain moves have transitional costs but will become cost-neutral over time.

Cocks confirmed both Q1 outperformance and improved outlook for rest of year. Goetter noted Q2 revenue will be down due to licensing settlement comp and Baldur's Gate/Monopoly Go lapping.

Cocks gave detailed POS outlook by category (trading cards/building blocks driving, others down low-single-digits) and cited specific innovation areas. Goetter explained closeout volume impact on share metrics.

Goetter confirmed cumulative 150-300bps margin expansion over 3 years. Explained video game monetization will help profit dollars and cash but hurt margin via depreciation of capitalized expenses.

Steve confirmed elasticities holding favorably. Q1 pull-forward from Easter sell-through and international customer pre-buying explained. Nothing structurally different for Q2.

Kirk provided detailed SNAP analysis across 5 states with mild impact. GLP-1 and gas price effects tracking within plan. Overall macro within guidance assumptions.

Kirk described investments as both near-term growth drivers and multiyear foundation builders. 2027 will also balance margin recovery with growth investment. More detail at March Investor Day.

Kirk noted cocoa markets finally reflecting fundamentals described for 18 months. Hedging in great shape for 2026. Hedged above current levels meaning 2027 upside potential. New equilibrium likely above historic levels.

Steve noted feeling marginally better on cocoa and optimistic on tariff trade deals. Modeled $200M incremental tariffs and cocoa inflation for 2026 but level of inflation moderating.

Steve confirmed international timing is biggest Q4 factor. Additional investment behind Halloween sell-through and holiday. Cocoa hedge timing less favorable than Q3.

Steve confirmed on-algorithm expectation for 2026 based on current visibility, acknowledging tariff fluidity.

Michele cited innovation driving value perception, emotional well-being correlation in stressed times, and soft comps. IC programs showing strong growth. Category may not sustain Q2 levels in H2.

Steve confirmed unequivocally better without tariffs. Still sees path to base business earnings growth based on where cocoa sits, requiring aggressive mitigation. Follow-up confirmed $100M unmitigated tariff estimate assumes 10% paused rate.

Dirk confirmed no price movements in market, strong Easter, improving share trends. Base business share turned from loss to slightly positive. Comprehensive answer.

Luca detailed fundamentals unchanged, mid-crop positive, industry gone longer with average coverage exceeding 10 months. Expects possible surplus and potentially lower prices ahead.

Luca confirmed chocolate pricing net of cost planned as slightly positive to neutral for 2026. Pricing flat but pipeline cost locked at lower level than 2025. Inventory accounting causes Q1 headwind but relationship improves through year.

Luca confirmed Europe rebound from Christmas activation, EM continuing with chocolate elasticity at just 0.3x in Q3. US projected at -4% volume but pricing actions and promo fine-tuning helping top and bottom line. Overall Q4 step-up expected across regions.

Luca described program addressing US bakery costs with more automated lines, reducing capacity constraints and improving cost structure. Second element: optimizing DSD logistics with fewer distribution centers and branches. Material impact starting 2027. Within existing cash flow goals.

Luca explained reduced flexibility from unpredictable heat wave and US destocking. Europe weather now cooperating. NA category still down 3%. Biscuits ex-NA up 7% YTD. Being prudent and cautious.

Luca said new crop data will clarify cocoa direction. If stays elevated, existing actions plus potential H2 pricing sufficient. If falls, material P&L upside with volume rebound. Exiting 2025 with GP per kilo that he likes.

Luca cited three drivers: slightly better pricing outside US, productivity ahead of schedule (procurement), and favorable commodity procurement. Tariff impact manageable, hitting Q4 NA. Cadence broadly unchanged.

Dirk outlined plan: sub-$3 price points, strong activations (July 4, Labor Day, Selena Gomez Oreo), push multi-packs, plus destocking to subside. Expects gradual improvement in H2.

Tucker declined to quantify refunds, citing uncertain scope and realization and the decision to exclude them from the outlook.

Tucker tied investments to distribution, innovation, marketing, and capacity, with pricing both strategic and inflation-recovery.

Tucker explains wide range maintained for prudence. Coffee upside covering SBS shortfall. Balance of business in line. Most confident at midpoint.

Tucker attributes SG&A improvement to general efficiencies and prudent spend management, not structural changes.

Tucker avoids promising specific exit rate but highlights: comparable growth ~6% ex-co-manufacturing. Momentum across away-from-home, pet resilience, SBS stabilization, Uncrustables growth.

Tucker provides specific margin trajectory: Q2 18.2%, Q3 slight improvement but below 20%, Q4 above 20% but likely not reaching 25%. $75M tariff costs predominantly in Q3.

Tucker walks through each segment: coffee momentum, Uncrustables growth, pet cat food momentum, SBS stabilization, and away-from-home as bright spot.

Tucker corrects: the $100M FCF increase is ongoing from the one big beautiful bill act, not one-time. Supports continued debt paydown toward 3x leverage by end of FY2027.

Cunfer said H1 inflation is largely locked high, with the second half dependent on whether the conflict eases.

Beekhuizen conceded near-term salty pressure, with simplification and execution improvements taking longer to land.

CFO quantified H2 Snacks organic decline at approximately -4%, fairly balanced between Q3/Q4 with Q4 slightly better. Not anticipating significant sequential improvement on net sales line but margin profile expected to get better by year-end.

CFO outlined Q4 margin drivers: Sovos ERP timing lap brings volume back to Q4, Snacks margin sequential improvement, tariff lapping begins in Q4 reducing YoY headwind, and lower advertising spend in Q4 (up in Q3, down in Q4 YoY).

CFO confirmed Snacks margin expectation lowered to 13% for full year (from prior 13.5%). Still expects sequential improvement from H1 to H2 but slower snacks recovery constrains margin recovery.

CEO modestly lowered Rao's growth outlook to high-single-digits from slightly above 10%. Year-to-date consumption at ~10%, Q3 at 2%. Latest four-week data shows sauce +9% and overall brand +11%.

Dave attributed margin performance to inflation tracking expectations, strong productivity, encouraging pricing elasticities. Free cash flow conversion raised to 105% from 100%, driven by cash tax efficiency, Ardent cash maintained, and inventory reduction via AI tools.

Sean explained 2-year shipments track consumption closely despite quarterly lumpiness. Dave confirmed positive Q4 organic growth expected with innovation shipments starting, plus operating margin inflection from lower A&P percentage and 53rd week leverage.

Sean confirmed good H2 expected for frozen with underlying trends inflecting, market shares at or near highs, and significantly stronger promotional programming than prior-year H2 when supply constraints limited activity.

Sean characterized the wider range as standard timing rather than signaling uncertainty, noting ranges are typically narrowed later in the fiscal year. Committed to updating next quarter.

Sean explained consumption weakness from low inventories and out-of-stocks is temporary, not from weakened consumer pull. Easter timing also affects Q4 comparison.