Spin Master Corp. says it expects to face a challenging year in 2024 amid ongoing economic pressures being felt by shoppers, but could see growth as it integrates U.S. toymaker Melissa & Doug following the closure of its acquisition. Spin Master signage is pictured in Toronto, Friday, Sept. 8, 2023. THE CANADIAN PRESS/Andrew Lahodynskyj
TORONTO – Spin Master Corp. says it expects to face a challenging year in 2024 amid ongoing economic pressures on shoppers, but could see growth as it integrates U.S. toymaker Melissa & Doug following the closure of its acquisition.
President and CEO Max Rangel told analysts on a conference call Thursday that Spin Master navigated a “challenging retail environment” in 2023 amid underwhelming demand for toys globally, with consumers shifting toward spending on services and experiences since the COVID-19 pandemic.
He says in the fourth quarter, the holiday shopping season didn’t bring an expected surge in toy sales despite deep discounts as shoppers remained cautious.
Rangel says Spin Master plans to launch a new “value” toy initiative in the second half of 2024, with price points as low as $1, to address continued pressure on consumer discretionary spending.
The Toronto-based toy and entertainment company behind the popular Paw Patrol, Bakugan, Hatchimals, Rubik’s Cube and Gund toys reported a loss of US$30.1 million in the fourth quarter, compared with a loss of US$13.8 million a year earlier.
But it says it expects the acquisition of Melissa & Doug, which closed just after its 2023 fiscal year ended, to contribute between US$370 million and US$375 million in revenue, along with savings opportunities.
This report by The Canadian Press was first published Feb. 29, 2024.
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