Q1 performance disappoints RC2

Sales decrease attributed to ?continued softness? at retail level.
Publish date:
Social count:

RC2’s net sales to March 31st dropped by 17 per cent to $93.3 million compared with $112.6 million for the first quarter a year ago.

Recall-related costs of $1.5 million had a negative impact on the firm’s net income, falling from $8.1 million in the first quarter of 2007 to just $2 million this year.

The firm attributed the net sales decrease to a softness seen across all product categories. The mother, infant and toddler products category decreased about ten per cent while the preschool, youth and adult products category decreased some 23 per cent.

Curt Stoelting, CEO, said: “Our 2008 first quarter results were disappointing. While the strong sales and earnings performance in the 2007 first quarter make comparisons difficult, the current year results were impacted by continued softness at the retail level. Retailers’ comparable sales have noticeably slowed and reorders of our products have been reduced.

“It is hard to predict when the retail environment will improve but we are excited about the new products we are introducing throughout 2008.”

Stoeling also said that the majority of the firm’s price increases will take effect in the second and third quarters.

“Looking forward, we continue to be guided by our strategic plan and we plan to continue to leverage consumer insights and digital marketing investments to guide our new product development and drive sustainable sales increases. We also remain committed to making acquisitions that will build long term shareholder value. In closing, we are excited about the opportunities to improve our business and to build momentum for future growth and profitability,” he concluded.



RC2 posts Q3 loss

Firm?s income drops by more than 40 per cent, announces increase and extension of stock repurchase program.


RC2 sales fall

RC2 has posted a lower than expected profit for the third quarter, hurt by a decline in sales.

Featured Jobs

Vivid Job Logo 620 x 349

Digital Marketing Executive - Toys & Games

Vivid is Britain’s biggest toy company and the 20 largest in the world. With offices across the globe, they sell an amazing portfolio of toys and games to over 60 countries. Vivid is best known for its association with blockbuster brands and is very excited about future opportunities around the world.


UK Sales Agents

Liberty House Toys have been appointed as the exclusive UK distributor for the BiOBUDDi brand, and we are pleased to introduce this new unique, innovative and exciting range of 100% environmentally-friendly toy building blocks. We are seeking experienced sales agents with existing network in the toy retail market.

Gameplan Job Logo 620 x 349

Head of Product Development & Marketing

Our client is a privately owned French toy and games manufacturer which sells through distributors in forty countries. The company develops and sells innovative electronic interactive toys and games for the educational and gaming markets, and also takes suitable licenses. To progress its successful business development a Head of Product Development & Marketing is to to recruited.

HIT Entertainment Job Logo 620 x 349

Licensing Systems Administrator

The Contract System Coordinator is a newly created role to support the deal term entry process into Mattel’s new Contract Management System for its Licensing business. The role will support the Business Teams at the Deal & Amendment phase of the contracting process and act in conjunction with the System Administration team.