Ahead of Toy Fair New York, Spin Master released both Q4 and full-year preliminary gross product sales numbers for 2018. While not a financial measure, the sales numbers are intended to provide context for the company’s performance, with full financial results for the fourth quarter and full year 2018 to be revealed after the close of business on March 6. Full year gross product sales rose 3.1 percent, while the fourth quarter saw a decrease of 3.8 percent.
“We are incredibly proud of our sales performance in 2018, despite the effect that the liquidation of Toys “R” Us had on the toy industry,” says Ronnen Harary, chairman and co-chief executive officer of Spin Master. “This past year was uniquely challenging for both the U.S. and global toy industry, with sales declining two percent for the full year in the U.S. Despite these challenges, our 2018 full year gross product sales grew over three percent to record levels for Spin Master. We are particularly pleased with the strength of our overall product portfolio as gross product sales in four of our five business segments increased for both the fourth quarter and full year 2018.”
Full Year Preliminary Gross Product Sales by Segment (US$M)
|
2018 |
2017 |
% Change |
||
|
Activities, Games & Puzzles and Plush |
$455.5 |
$365.4 |
24.7% |
|
|
Remote Control and Interactive Characters |
$505.4 |
$593.4 |
(14.8)% |
|
|
Boys Action and High-Tech Construction |
$133.1 |
$112.1 |
18.7% |
|
|
Pre-School and Girls |
$517.5 |
$493.1 |
5.0% |
|
|
Outdoor |
$96.5 |
$93.1 |
3.6% |
|
|
Gross Product Sales |
$1,708.0 |
$1,657.1 |
3.1% |
|
Q4 Preliminary Gross Product Sales by Segment (US$M)
|
Q4 2018 |
Q4 2017 |
% Change |
||
|
Activities, Games & Puzzles and Plush |
$145.2 |
$131.4 |
10.5% |
|
|
Remote Control and Interactive Characters |
$107.9 |
$198.7 |
(45.7)% |
|
|
Boys Action and High-Tech Construction |
$57.9 |
$36.7 |
57.8% |
|
|
Pre-School and Girls |
$139.1 |
$102.4 |
35.8% |
|
|
Outdoor |
$15.3 |
$14.6 |
5.3% |
|
|
Gross Product Sales |
$465.4 |
$483.8 |
(3.8)% |
|
“The absorption of toy sales that were lost from the liquidation of Toys “R” Us, amongst our remaining customers, was not as much as we expected, creating an unprecedented and difficult holiday season,” added Ben Gadbois, Spin Master’s global president and COO. “Against these headwinds, our 2018 Gross Product Sales growth solidly outperformed the industry. Activities, Games & Puzzles and Plush grew strongly in 2018 led by Gund, Cardinal and Kinetic Sand and we saw growth in our preschool and girls business segment in the fourth quarter, driven by an increase in Paw Patrol shipments, which rebounded strongly in Q4 2018 led by fresh content and a deep and diverse product line. Hatchimals in its third holiday season declined, as planned, resulting in a decrease in the remote control and interactive characters business segment. We remain very focused on our rolling forward-looking brand innovation pipeline and to showing our 2019 product line to investors and analysts during our New York Toy Fair presentation.”
