Spin Master Corp. ( OTCPK:SNMSF ) pre-announced below-consensus sales on Tuesday, but forecast an inflection to come as inventory levels normalize.
The Canadian toy maker preliminary announced $2.02B in revenue for the full-year, a 1.1% drop from 2021. The full-year figure is arrived at due to a preannouncement of $465.8M in sales for the fourth quarter. Both figures came in slightly below the analyst consensus set at $2.17B for the full-year and about $471M for the fourth quarter.
“As expected, Toy Revenue in the second half of 2022 was pressured by changes in the macroeconomic environment, particularly from higher inflation compounded by foreign exchange volatility and a carry-over of inventory at retail from the first half of 2022,” CEO Max Rangel said. “In Entertainment, we grew licensing and merchandising revenue and continued to build our content pipeline with new series introductions. Our Digital Games creative center, lapping unprecedented growth during the pandemic, experienced a slight revenue decline in 2022.”
Despite the declines noted in the pre-announcement, management remained optimistic about the long-term trajectory for sales.
“We continue to pursue our long-term strategy of leveraging our IP across all three creative centers, making meaningful acquisitions, growing our global footprint and delivering magical experiences for children and their families, in order to deliver long term shareholder value,” Rangel concluded.
Shares of the Toronto-based toy manufacturer rose 3.33% in afternoon trading on Tuesday.
Read more on the details of the preliminary results .
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Spin Master shares rise despite pre-announcement of softer than expected revenue