Revenue slumped 17% in a soft quarter for toy sales, as “uncertain macroeconomic environment” caused by tariffs impact retailer buying behaviour
Spin Master reported revenue of $734.7 million in the third quarter, a 17% year-on-year decline as toy sales soften.
The company said tariffs had hit its toy business hardest, with retailers shifting their purchasing habits in response to the uncertainty of Trump’s foreign economic policy. Operating income from its toy division was down $55m compared with the same period in 2024, with smaller losses in its entertainment business offset by an uplift of $10m from digital games.
Spin Master’s Chief Financial Officer, Jonathan Roiter, put the soft quarter down to an “uncertain macroeconomic environment as well as the shift in retailer buying behaviour driven by the impact of tariffs”.
“Toy gross product sales were nearly 20% lower for the quarter, with the company’s wheels and action segment the only to see growth, up 10% on last year”
“These impacts were partially offset by another strong quarter for digital games, reflecting improved monetisation of our platforms,” he added. “Our balance sheet and cash conversion is strong and we’re making important investments in key areas to drive both growth and higher returns in future years.”
Toy gross product sales were nearly 20% lower for the quarter, with the company’s wheels and action segment the only to see growth, up 10% on last year. Its preschool, infant and toddler, and plush segment was down 23%, with activities, games and puzzles, and dolls and interactive faring worse, down 28%.
Chief executive Christina Miller, who was appointed this summer, said there were reasons to be confident things would improve over the coming festive period and into 2026.
”We are well-positioned for the holiday season with a broad range of our award-winning toys and brands featured on retailers’ top toy lists, a first-ever Paw Patrol Christmas special set to air on broadcast networks, platforms and in theatres globally this November, and a robust lineup of new features, content releases, and strategic partnerships across our digital games business,” she said. “Across our creative centres, we continue to execute on our strategy to unlock value through cross-collaboration, engaging consumers and driving long-term, sustainable, and profitable growth.”
