Following several difficult quarters, Spin Master saw growth in Q3 2020, thanks to strength in its outdoor toy and boys action categories. The Toronto-based toy and entertainment company’s revenue grew by 4.3% to US$571.6 million in the third quarter.
Revenue for the outdoor category—including Swimways (pictured)—nearly doubled, increasing 92.2% to US$12.3 million. The toymaker’s boys, action and construction category reported US$131.6 million in revenue for the period (an increase of 27.5%), driven by the performance of DC licensed products.
The activities, games, puzzles and plush category grew 13.2% to US$172.5 million, buoyed by strong sales for brands like Kinetic Sand, Cool Maker and Orbeez. Other revenue increased 80.9% to US$48.3 million on the strength of sales for digital games.
Spin Master reported US$88.6 million in revenue for its remote control and interactive characters category, a 24.5% decline compared to the same period last year. Lower sales for Owleez and Hatchimals contributed to the drop. The preschool and girls category, meanwhile, saw revenue fall 10.6% to US$182.4 million, due to lower sales for PAW Patrol, Twisty Petz and Candylocks.
Gross product sales increased in Europe (up 15.6%), but declined in North America (down 2.6%) and the rest of the world (down 10.8%).
Spin Master also inked a Q3 agreement to acquire London-based Rubik’s Brand—owner of Rubik’s Cube. The US$50-million deal will grow the company’s games category and is expected to close in January 2021.
The toyco withdrew its 2020 outlook in March, and announced it will maintain this suspension on providing forecasting. Looking forward, Spin Master plans to focus on developing brands inspired by entertainment properties and digital toys.