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# Hasbro Says Magic's Expected Fourth-Quarter Dip Is Timing, 'Not A Demand Signal'
- URL: https://www.bullished.co/hasbro-says-magics-expected-fourth-quarter-dip-is-timing-not-a-demand-signal-919ef1a2/
- Published: 2026-10-20T13:55:53.000Z
- Updated: 2026-10-20T13:55:53.000Z
- Description: Management says about $40 million of Magic sales moved into the third quarter, and that the Wizards back half is running ahead of July's outlook.
- Author: Matteo Parrino
- Tags: Earnings, HAS, Industry: Consumer Discretionary

Hasbro CEO Chris Cox said on the company's third-quarter earnings call that an expected fourth-quarter decline in Magic: The Gathering is shipment timing, and "that's not a demand signal." CFO and COO Gina Goetter said about $40 million of Magic sales expected in the fourth quarter, mainly Reality Fracture, landed in the third quarter instead.

## What management said about the fourth quarter

A Citi analyst pressed the point, saying the fourth quarter looked worse than the Street had expected and that everyone was trying to separate signal from noise. Cox agreed with the analyst's recap of the moving pieces.

He said Wizards of the Coast manages "the game for the fans and not for quarterly results," and that an occasional quarter may be down modestly. Magic will probably be down in the fourth quarter, he said, partly because supply chain delivered some product earlier than planned and the channel wanted it.

Some product was also shifted into the first quarter of 2027\. Without those shifts, Cox said, Magic would have grown in the high single digits to low double digits in the fourth quarter.

Goetter said management was "staring at the same math ourselves" in preparing and knew it would be a top question.

## What it changes: a stronger back half

Goetter said that in July the company expected the Wizards back half to be up in the low single digits. It now expects a back half up in the high single digits to low double digits.

She said one week of shipments can move a quarter, and that Reality Fracture's first-week shipments pulled volume out of the fourth quarter. In her prepared remarks she said the roughly $40 million of pre-shifted revenue comes out of fourth-quarter expectations.

Third-quarter Magic revenue grew 34% to $616 million, and Cox said it topped $600 million for the first time. Wizards revenue grew 31% to $747 million. [Hasbro](https://www.bullished.co/tag/has/) raised its Wizards revenue growth outlook for the year to 16% to 18%, with operating margins of about 44% to 45%.

For 2027, Goetter said Wizards margins should land in the high 30s because of non-cash amortization on two video games. About 65% of the Exodus amortization cost should come through in the second quarter, she said. Exodus launches April 7, 2027.

## What to watch

The Star Trek set, Magic's last of the year, arrives in November. Cox said early signs are encouraging. Hasbro's next report will show whether the fourth quarter matches management's call for a decline. Shares were up 6.58% to $104.97 in market data from the morning of the call, against a prior close of $98.49.

Cox said Exodus wish lists are approaching a million, and that Hasbro expects major news on the game in December.

### More on Hasbro

- [Hasbro Lifts 2026 Outlook, Doubles Buyback Target After Magic: The Gathering Revenue Tops $600 Million](https://www.bullished.co/hasbro-lifts-2026-outlook-doubles-buyback-target-after-magic-the-gathering-revenue-tops-c6c3e122/)

[All Hasbro (HAS) coverage →](https://www.bullished.co/tag/has/)