A summary of the results are as follows:
- Consolidated net sales were $553.6m, down 5%.
- US segment net sales were down 9%, while international segment net sales were up 6%.
- Operating cash flow was $78.9m, up 16%.
- Cash and cash equivalents were $168.1m as of December 31, 2013, up 40% compared to the balance as of December 31, 2012.
- Revenue from LeapPad up 11%.
“The holiday retail environment was very challenging,” said John Barbour, CEO. “As a result, we were unable to build on the 28% full-year net sales growth we achieved in 2012, and our net sales declined 5% for the year. 2013 was our second most profitable year in the last 10 years, and our compound annual net sales growth rate for the last four years was 10%.”
Mr Barbour continued: “We entered the fourth quarter of 2013 with net sales up 9% through the first nine months of the year, significantly better retail in-stocks, more shelf space and far stronger promotional campaigns planned for the holiday season. Unfortunately, tough retail conditions, deep retailer price discounting, open-to-buy issues and increased competition impacted our business. While we are disappointed with our 2013 results, our LeapPad hardware net sales grew by over 11%, and we remained the market leader in children’s learning tablets in most of our major markets for the third year in a row, including in the US and the UK. Our LeapFrog Explorer Licensed and Non-Licensed Software Assortment was the second best-selling toy ranked in dollars in the US and number seven in the UK according to NPD.”
If you would like to receive our daily newsflash email, please enter your email address in the “sign-up” box at the top of the page; you can also follow us on Twitter and Facebook and request a print subscription here.