Spin Master Sees Supply Chain Improvements, Withdraws 2020 Full-Year Outlook Amid Coronavirus Spread

The uncertainty surrounding the spread of COVID-19 prompted Toronto-based Spin Master to withdraw its previously issued 2020 outlook.

On March 4, the company said that it was expecting gross product sales to decline in the mid-single-digit range this year, excluding supply chain and other disruptions related to the coronavirus situation. Due to the fluid nature of the challenges associated with COVID-19, Spin Master says that it will not issue any further guidance in the near term.

“Since early March we have seen a substantial improvement in our Asian supply chain, particularly in China, as expected,” says Mark Segal, Spin Master’s executive vice president and chief financial officer. “However, the disruption we are now seeing in key customer markets resulting from the impact of COVID-19 is significant and we are withdrawing our fiscal 2020 guidance statement as a result thereof. Our balance sheet remains strong, with cash on hand and committed credit lines available, which provides us with significant financial flexibility. Spin Master is known for its resiliency and entrepreneurial spirit. We believe in our ability to withstand any issues and continue to succeed.”

Spin Master says that its production volume is beginning to approach normal levels at its facilities across China, Vietnam, and India. A further update will be issued on May 6 when the company reports its Q1 financials.

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.