Character Group has released its latest trading report commenting that the market remains challenging, citing the bankruptcy of Toys R Us as one the major challenges.
"The portfolio of brands serviced from our UK base continue to trade well, with domestic sales holding up at levels comparable to the same period last year and against the year to date trends of the toy industry as a whole," reads the statement.
"Our international and “FOB" sales have been adversely affected by a combination of several factors, not least of which is one of the world’s largest toy retailers entering into Chapter 11 bankruptcy protection in the US and Canada," continued the statement, "which has had subsequent knock-on repercussions in every market where it trades (including the UK). Our international customers are also taking a very conservative approach to purchases."
The toy Group anticipates returning to its previous growth pattern during the second half of the 2018 calendar year, which is expected to be reflected in the financial performance for the year ending 31 August 2019.
Character will be updating the market further when the company announces its preliminary results during the week commencing December 4th 2017.