Spin Master has seen a surge in sales growth of its boys action and high tech construction category by 195.5 per cent, thanks to franchises such as How to Train Your Dragon, Monster Jam and the relaunch of Bakugan.
The segment ended its Q1 trading period at $49.4 million, while activities, games, puzzles and plush saw sales increase 9.4 per cent to $6.1 million via its Gund plush products and Kinetic Sand and Cool Maker brands.
The figures weren’t enough to distract from the headline news, however, that the Canadian toymaker has suffered a 16.3 per cent revenue dip for the first quarter, with total figures coming in at $239 million.
PAW Patrol and Hatchimals have been placed at the centre of the downturn. The company’s remote control and interactive characters segment dropped a bruising 65.9 per cent to $31.1 million, due to declines in Hatchimals and Luvabella brands.
Meanwhile, declines in PAW Patrol contributed to its pre-school and girls’ segment dip of 23.3 per cent to $63.3 million, while its outdoor segment also dropped 15.9 per cent to $33.6 million.
Lower royalty income from products marketed by third parties and using Spin Master’s owned IP fell 3.1 per cent, however this was offset in part by increased television distribution revenue.
In terms of gross profit, this fell 27.6 per cent to $107.7 million in Q1 2019. Gross product sales dropped 16.5 per cent to $240.5 million, down 3.2 per cent across Europe.
Looking forward, the company expects gross product sales to increase over the course of the year.