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The Canadian toymaker and children's entertainment powerhouse behind the popular animated television series Paw Patrol marked its second consecutive quarter of increasing profitability on Thursday and showed no signs of slowing down in the second half of 2021.
The
With it comes an extensive global marketing campaign, hundreds of consumer goods partners leveraging the Paw Patrol brand and an anticipated lift in sales of toys related to Ryder and his team of pups.
The price increases "provide a partial offset to the sharply rising input and ocean freight costs that we are seeing," he told analysts on a conference call.
The escalating cost of goods is being felt across the toy industry,
"We continue to see increases in input costs, primarily from plastic resin, paper and cardboard packaging and more recently from electronic chips," Segal said during the call.
Shipping costs have also emerged as a concern, Segal said, noting that ocean freight has nearly doubled as a percentage of the company's cost of goods sold compared to prior years.
"These cost increases accelerated significantly in the latter part of (the second quarter)," he added.
Rangel said the company is also seeing "logistics disruption" driven by congestion in key ports, as well as rising COVID-19 infections in some parts of
Still,
Some retailers already have the company's fall line up of products on display or featured on end caps, while in other cases the toys have arrived in local warehouses and are making their way to retail shelves, Rangel said.
"Everyone's really working hard to get them to you," he said in response to an analyst's remark about being unable to find Paw Patrol: The Movie-themed toys during a recent visit to a large retailer in
The company said its second quarter net income was
The company, which reports in
The company also reported a strong increase in digital games revenue, driven by growth in
"Kids are spending more time socializing with their friends in these expansive digital playgrounds through the new content releases and tools that allow them to create connect and share," Rangel said. "
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