Spin Master reports increased Q2 revenue and net income despite challenges from Toys R Us bankruptcy.
The Toronto-based toy maker says it had net income of $26.9m or 26 cents per share in the three months ended 30th June, compared with $22.1m, or 22 cents a year earlier.
Revenue came in at $312m, an increase of 12.6% from $277m in the second quarter of 2017.
Analysts had forecast net income of $17.5m or 16 cents per share on revenue of $276m, according to Thomson Reuters Eikon.
CEO Ben Gadbois said in a statement the strong performance resulted from steady consumer demand for the company’s brands, which include Hatchimals and Paw Patrol, and its entertainment franchises.
He commented: “Looking forward to the balance of 2018 and beyond, we are excited about our upcoming innovative product launches as well as our new entertainment content.”
Spin Master reported sales of activities, fun furniture and games and puzzles rose 49% to $86m in the second quarter compared to the same period of 2017, while remote control and interactive characters fell 19% to $68m.
Spin Master’s net income in the first quarter was $8.7m, or nine cents per share, thanks in part to a $15.2m bad debt expense related to the Toys R Us store closings.
