Spin Master shares trade down after earnings drop from Toys R Us closures
Posted Mar 7, 2019 02:32:52 PM.
This article is more than 5 years old.
TORONTO — Shares of Spin Master Corp. were down almost eight per cent in midday trading on the Toronto Stock Exchange after the toy and entertainment company’s earnings dropped and it warned of lingering disruptions from the U.S. bankruptcy of Toys R Us.
The Toronto-based company behind popular brands including Paw Patrol and Hatchimals says in its quarterly results that the liquidation of the roughly 700 U.S. Toys R Us stores will continue to disrupt the retail landscape for the first half of the year.
The extended hit comes after the company reported adjusted net income for the quarter ending Dec. 31 of US$6.1 million, or six cents per share, compared with US$25.5 million or 25 cents per share a year earlier.
Spin Master says it had expected other retailers to extend shelf space to make up for most of the lost Toys R Us retail space, but has revised down how much that has happened.
It says the U.S. toy industry overall was down about seven per cent in the fourth quarter from a year earlier and two per cent for the year.
The company says it is pushing its new entertainment ventures including Abby Hatcher as it looks to expand market share and widen sales channels.
Companies in this story: (TSX:TOY)
The Canadian Press
