The firm revealed a second-quarter profit that easily beat market estimates, helped by better cost-reduction efforts.
The company posted second-quarter net income of $3.3 million, or 19 cents a share, compared with a net loss of $6.4 million, or 37 cents a share, a year ago. Excluding recall-related items, it earned 20 cents a share.
Revenue fell two per cent to $87m. Increased sales at RC2's mother, infant and toddler product categories partly offset weakness at its preschool, youth and adult categories.
Analysts on average were expecting earnings of 12 cents a share, before special items, on revenue of $85.3 million, according to estimates.
Selling, general and administrative expenses fell 14 percent to $29.9 million in the quarter.