President and CEO
He said consumers spent less on toys amid high inflation and rising interest rates, instead shifting toward services and experiences such as travel, restaurants, concerts and sporting events since the COVID-19 pandemic.
"Consumers spent less per child in the toy aisle and traded down from a price point perspective across multiple categories as they had to make more considered spending decisions," Rangel said.
"Looking forward, we expect that 2024 will be a challenging year due to the continued economic pressure on consumers and a shorter shopping period during the holiday season."
American
Rangel said the 2023 holiday shopping season didn't bring an expected surge in toy sales despite deep discounts as shoppers remained cautious.
The
Revenues rose to
Rangel said
"We believe there is a large opportunity to grow volume in this channel," he said.
"Our new value line leverages our strongest brands and licences including Paw Patrol, Gabby's Dollhouse, Monster Jam and DC Comics with price points as low as
The company also expects the acquisition of Melissa & Doug, which closed just after its 2023 fiscal year ended, to contribute between
The
"We see many opportunities for growth by leveraging Melissa & Doug to grow our early childhood play capabilities," said Rangel.
Chief financial officer
Rangel said the company hopes to capitalize on other initiatives this year, including the 50th anniversary celebration of the classic Rubik's Cube, through the launch of a mobile game called Rubik's Match.
Rangel said the company has surpassed
"The release of the second movie had a very positive impact on watch time across all Paw content, including the TV series, helping to fortify Paw's brand equity and health," he said.
Earlier in 2023,
He told analysts the spinoff show continues to be one of the top five preschool shows on Nickelodeon in its age category.
This report by The Canadian Press was first published
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