Mega Brands has lost $11 million on net sales in its Q3, recording $184 million compared to $202 million for the same period last year.
The firm blames the loss in sales on production delays in Asia, which resulted in at least $15 million of orders not being shipped. Shipments of Magnetix products also fell by $16 million.
Gross profit for Mega Brands Q3 plummeted to $35.8 million from $90.5 million.
Mega Brands chief executive Marc Bertrand said: “Our results are not what we, nor you, expected them to be.”
The firm says it plans to implement a number of initiatives to try and drive consumer demand and its financial performance further ahead. These plans include a more focused approach to marketing, business and manufacturing processes.
“The overall health of our business is good, with leading brands, strong category positions and growth opportunities worldwide. Through the successful implementation of this plan, our financial performance will measure up to the potential of our company,” Bertrand also said.