We continue to see tangible benefits from our cost transformation efforts. Through the first nine months, we delivered approximately $150 million in realized gross savings, keeping us on track to achieve our full-year target. Operational efficiencies expense management, and productivity gains across sourcing and logistics are driving strong margin performance, even as we absorb higher royalty costs at Wizards and trade-related headwinds in consumer products. These savings are translating directly into margin resilience and giving us the flexibility to reinvest behind our highest return growth engines.

Oct 23, 2025 / CFO / receipt, needs a key / Gina Getter, CFO | earnings call 2025-10-23 | transcript 3d5a0d64-8864-4950-a3e2-8047129eff05 | chars 9661-10269 | segment 10

The margin change was driven primarily by tariff expense and unfavorable mix, offset in part by productivity improvements across our supply chain and expense management.

Oct 23, 2025 / CFO / receipt, needs a key / Gina Getter, CFO | earnings call 2025-10-23 | transcript 3d5a0d64-8864-4950-a3e2-8047129eff05 | chars 8757-8926 | segment 9