With skyrocketing sales in its girls and preschool business segment, Toronto, Canada toy and entertainment company Spin Master more than tripled its earnings to post a 19.9% increase in revenue in Q2 from 2014 numbers.
For the quarter ending July 30—its first as a publicly traded company—Spin Master’s net income climbed to US$7.6 million from US$2.1 million, and revenue increased to US$127.7 million from US$106.5 million.
Spin Master’s girls and preschool segment accounted for nearly half of that revenue, thanks to a 144.4% increase to US$58.9 million from US$24.1 million in sales. On the flip side, the boys action and high-tech construction segment posted the largest decline, dropping by 43.9% to US$23.9 million from US$42.6 million.
Overall, sales of Spin Master’s Zoomer, PAW Patrol, Chubby Puppies, Little Charmers and Kinetic Sand products drove revenue in Q2, which was partially offset by declines in products connected to 2014 films Teenage Mutant Ninja Turtles and How to Train Your Dragon 2. Revenue also increased across the board in international markets, with Europe seeing the biggest boost.
Turning to Spin Master’s other two main business segments, remote control and interactive characters climbed 19.7% to US$28 million from US$23.4 million, while activities, games and puzzles and fun furniture dipped by 1.4% to US$28.3 million from US$28.7 million.
Looking at Spin Master’s 2015 year-to-date performance, compared to this time last year, revenue is up 27.1% (US$184.2 million to US$234.2 million); its preschool/girls division sales spiked by 163.8% (US$39 million to US$102.9); activities, games and puzzles, and fun furniture climbed by 23% (US$46 million to US$56.6 million); remote control and interactive characters gained 9.8% (US$41.4 to US$45.5 million); and boys action and high-tech construction sales dropped by 35.7% (US$78.9 to US$50.7 million).
Spin Master is forecasting between 8% and 12% growth over Q3 and Q4, compared to the same period last year, with a total gross product sales increase of between 12% and 15% for the fiscal year.
New Spin Master products in the pipeline for the balance of the year include the four-foot talking robot Meccanoid, which created quite the buzz when unveiled at New York Toy Fair in February. Spin Master is also making a range of licensed products for the upcoming feature film Star Wars: Episode VII – The Force Awakens, including the highly anticipated interactive Yoda.
In related news, earlier this week Spin Master upped Laura Clunie to VP of entertainment, where she helms all aspect of the company’s entertainment business. She had been overseeing development and production of preschool and girls series, PAW Patrol and Little Charmers, respectively, since starting with Spin Master in February.