Toycos across the board are reporting losses as Q1 reports rolling in, and it looks like Oak Brook, Illinois-based toyco RC2 Corporation has also been hit by current economic troubles.
The company’s net income for the quarter was US$1.8 million, down slightly from the US$2.0 million earned during the same period last year. Net sales also saw a decrease of 7.5% to US$86.3 million, compared with net sales of US$93.3 million for Q1 2008.
Foreign currency exchange rate fluctuations also had an impact, reducing the consolidated net sales by about 6%.
In more positive news, net sales of the mother, infant and toddler products category saw a slight uptick of 2.4%, compared with the first quarter last year, with sales increases generated in infant and toddler gear and feeding and care products belonging to RC2′s The First Years brand. However, net sales of the preschool, youth and adult products category took a 17.3% dive from the same period last year, which included US$1.2 million in sales from discontinued product lines in 2008.
CEO Curt Stoelting said the company was affected by conservative retail orders and unfavorable foreign currency exchange translation, as international sales for the quarter increased 19% in local currencies but, declined by 9% in U.S. dollars, though he remarked that retail sell-through in the quarter exceeded shipments in many product lines.
Sales of the Thomas & Friends Wooden Railway product line, however, saw an increase from the previous year.