Culver City, California-based specialty toyco Small World Kids reported a 10.9% spike in Q1 2007 net sales, jumping to US$7.2 million from US$6.4 million in 2006. The company’s gross margin was up 6.9% to 39.9%, while operating expenses dropped 13.8%. The two factors combined helped to reduce operating losses to US$500,000, down US$1.3 million from Q1 2006 losses of US$1.8 million.
CEO Debra Fine attributes the climb in revenue to a move to larger distribution in the mass retail market. Currently, Small World’s infant and preschool educational products, including the Tolo and Neurosmith line and licensed goods based on Dr. Seuss and The Very Hungry Caterpillar, are sold in more than 3,000 locations across the US.