Toronto-based Spin Master Corp. found mixed results in the third quarter that yielded a slight increase in both sales and revenue as the toy industry heads into the important holiday selling season.
Gross product sales increased by just 0.7% while revenue increased 4.3% to $571.6 million versus $548.1 million during the same period last year. The company experienced big growth in boys action and construction, which spiked 27.5%, and activities, games, puzzles, and plush, which grew 13.2%. The outdoor category, which makes up just a small percentage of Spin Master’s product mix, grew 92.2% in Q3.
“This quarter we showed continued progress on many fronts,” says Spin Master Co-CEO Ronnen Harary. “We launched one of our strongest fall lines ever, with many of our toys making retailers’ top toy lists and in the quarter we grew both gross product sales and revenue while managing through the uncertain conditions arising from COVID-19. In September, we premiered our first-ever straight-to-streaming entertainment franchise Mighty Express and also saw significant growth in our Toca Boca digital games business driven by increased engagement and new content. Thanks to the dedication and tenacity of our team members globally, we are very well positioned for the holiday season with strong POS momentum globally for our products, lean retail inventories, and continued consumer demand within the toy category.”
Declines were felt across remote control and interactive characters (-24.5%) and preschool and girls (-10.6%).
Spin Master’s expansion into other business areas including digital and entertainment is starting to pay off with an 80.9% increase in other revenue driven largely by digital games revenue toplined by the Toca Life World platform.
In recent months, Spin Master has seen growth in its DC Comics and Batman-branded toys that launched early this year. The company also revealed plans to buy the Rubik’s brand for around $50 million in a deal set to close in January.