Spin Master Corp. is the latest toymaker to release preliminary earnings for Q4 and full year 2022.
The move follows Hasbro’s earnings preview and precedes tomorrow’s formal reporting from Mattel. Spin Master says that its preliminary unaudited revenue results are intended to provide context for its performance in line with the timing of financial results for the broader industry.
Spin Master’s total revenue in 2022 was $2.02 billion, a 1.1% decline from 2021. The company says that the dip was due to decreases across its entertainment and digital games businesses, but was offset by a slight increase in overall revenue for toys. In constant currency, the company saw a 1.4% revenue gain last year.
“We are pleased that we grew both our constant currency revenue and constant currency toy gross product sales for 2022,” says Max Rangel, Spin Master’s Global President and CEO. “From a creative center perspective, in Toys, we had an exceptionally strong first half of 2022, driven in part by retailers bringing in toys earlier in the year than normal to minimize anticipated supply chain disruptions going into the fall. As expected, toy revenue in the second half of 2022 was pressured by changes in the macroeconomic environment, particularly from higher inflation compounded by foreign exchange volatility and a carry-over of inventory at retail from the first half of 2022. In entertainment, we grew licensing and merchandising revenue and continued to build our content pipeline with new series introductions. Our digital games creative center, lapping unprecedented growth during the pandemic, experienced a slight revenue decline in 2022. We continue to pursue our long-term strategy of leveraging our IP across all three creative centers, making meaningful acquisitions, growing our global footprint, and delivering magical experiences for children and their families, in order to deliver long-term shareholder value.”
Like others in the toy space, Spin Master was hit with a challenging fourth quarter which included declines in toy revenue and sales. Total Q4 toy revenue dipped 26.8% alongside a 23.6% slide in gross product sales.
For the year, toy revenue spiked a modest 0.3% driven by growth in the Preschool and Dolls, Interactive, and Wheels and Action. Categories that were fueled by the pandemic boom of 2020 and 2021 dropped off, including Activities, Games, and Puzzles, Plush, and Outdoor.
Hit brands for last year included Gabby’s Dollhouse, Purse Pets, Wizarding World, Tech Deck, DC, and Monster Jam.
Look for details on Spin Master’s 2023 product lineup, the PAW Patrol 10th Anniversary celebration, and more in The BIG Toy Book, available February 28!