American toy business, Spin Master, has unveiled its 2019 first quarter results, reporting that in Q1 revenue decreased 16.3 per cent to US$239 million, compared to US$285.7 million in 2018.
Gross product sales also slipped in Q1, decreasing 16.5 per cent to US$240.5 million, compared to US$288.0 million in 2018. Geographically, gross product sales decreased 23.4 per cent in North America, 3.2 per cent in Europe and 6.3 per cent in the Rest of World.
Combined, international gross product sales made up 41.2 per cent of total gross product sales for Spin Master, an increase from 35.9 per cent in 2018.
Spin Master chairman and co-CEO, Ronnen Harary, said the slowing sales were due in part, to an absence of Toys R Us.
"Our results for the first quarter fell below the prior year's performance, reflecting the absence of shipments to Toys R Us as well as the shift in the timing of Easter.
"Q1 saw a number of successful toy license partnership launches, including Monster Jam and How To Train Your Dragon, our relaunch of the Bakugan toy and TV franchise, and Abby Hatcher, our new preschool TV series."
However, Spin Master maintains that it is on-track to deliver long-term growth.
"We are maintaining our outlook for 2019 and expect that the balance of the year will be more reflective of the underlying strength of our business," Harary said.
"We manage Spin Master for the long term and as we execute through the tail-end of a very disruptive retail environment, we are confident that we are well positioned to drive profitable long-term growth."
To read Spin Master's full Q1 report, click here.