Source: Spin Master/The Toy Book

Spin Master Corp. emerged from a challenging year with fourth-quarter sales that were softer than expected.

The Toronto-based toy and entertainment company reported that gross sales declined 7.1% in Q4 to $511.8 million versus $550.7 million during the same period last year. For the full-year, gross sales fell to $1.62 billion, a 4% decline from $1.69 billion in 2019.

“We’re proud of the significant operational improvements and cost efficiencies our team delivered in 2020, while simultaneously navigating the complexities of the global pandemic,” says Ronnen Harary, co-CEO, Spin Master. “At the outset, we were committed to resolving the operational challenges we faced in 2019. I am pleased to say that we achieved our goal through significantly improved focus and execution in every function across Spin Master globally. We are particularly excited with the strong growth we saw in our digital games business led by Toca Life World. With a clear vision for our future, a solid operating platform with three thriving creative centers encompassing toys, entertainment, and digital games and an exceptional leadership team in place, fortified by the appointment of Max Rangel as global president and with him assuming the position of CEO in April, we are now poised for our next stage of growth.”

Related: Is this the End of the Master Toy Licensee?

Like its counterparts at Hasbro and Mattel, Spin Master is placing increased emphasis on its digital gaming and entertainment business with revenues from those streams growing in importance.

For the year, Spin Master found success in its DC licensed products — including its growing Batman brand —Tech Deck, Present Pets, Kinetic Sand, its games and puzzles portfolio, Rainbow Jellies, Orbeez, and Monster Jam RC. The company says it experienced declines across GUND, Bakugan, DreamWorks Dragons, Meccano, PAW Patrol, Hatchimals, and other brands.

Spin Master’s Ronnen Harary and Mark Segal will host a conference call to discuss earnings tomorrow at 9:30 a.m.

About the author

James Zahn

James Zahn

James Zahn, AKA The Rock Father, is Editor-in-Chief of The Toy Book, a Senior Editor at The Toy Insider and The Pop Insider, and Editor of The Toy Report, The Toy Book‘s weekly industry newsletter. As a pop culture and toy industry expert, Zahn has appeared as a panelist and guest at events including Comic-Con International: San Diego (SDCC) Wizard World Chicago, and the ASTRA Marketplace & Academy. Zahn has more than 30 years of experience in the entertainment, retail, and publishing industries, and is frequently called upon to offer expert commentary for publications such as Forbes, Marketwatch, the Wall Street Journal, the New York Times, USA Today, Reuters, the Washington Post, and more. James has appeared on History Channel’s Modern Marvels, was interviewed by Larry King and Anderson Cooper, and has been seen on Yahoo! Finance, CNN, CNBC, FOX Business, NBC, ABC, CBS, WGN, The CW, and more. Zahn joined the Adventure Media & Events family in 2016, initially serving as a member of the Parent Advisory Board after penning articles for the Netflix Stream Team, Fandango Family, PBS KIDS, Sprout Parents (now Universal Kids), PopSugar, and Chicago Parent. He eventually joined the company full time as a Senior Editor and moved up the ranks to Deputy Editor and Editor-in-Chief.