Canadian Manufacturing

Toy maker Spin Master expects sales to decline this year, shares fall

The company says it is monitoring the situation around the COVID-19 virus closely

March 5, 2020  The Canadian Press

TORONTO — Shares of Spin Master Corp. plunged nearly 40% Thursday after the toy maker reported a loss in its latest quarter and warned it expected its gross product sales to decline this year.

The company says it is monitoring the situation around the COVID-19 virus closely, as about 60% of its goods are produced in China and it is not yet able to produce at full capacity.

In its outlook, Spin Master says it expects a decline in gross product sales for 2020 toward the higher end of the mid-single digit range, due in part to supply chain and other disruptions resulting from the new coronavirus outbreak.

The Toronto-based toy company, which reports in U.S. dollars, says it lost US$17.2 million or 17 cents per diluted share for the three months ending Dec. 31, compared with a profit of US$11.4 million or 11 cents per diluted share a year earlier. The adjusted loss was US$7.8 million or eight cents per diluted share, compared with an adjusted profit of US$6.2 million or six cents per diluted share in the prior year.

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Analysts had expected an adjusted net loss of 12 cents per diluted share, according to financial markets data firm Refinitiv.

Spin Master shares closed down $11.53, or 39.34%, at $17.78 on the Toronto Stock Exchange.