Across the toy industry, October store sales have been "disappointing" and "well below retailers' plans," said
"Consumers are under pressure and whilst consumer spend remains high overall, consumers are allocating their spend to travel and experiences," he said on a Thursday call with analysts.
Segal's observations about the market come as
However, this shopping season has come with stubbornly high inflation, making consumers think twice about purchases or hunt for deals more than they may have before prices rose.
"We expect consumers to purchase very late in the season, which will reduce our replenishment potential," said
Responding to this trend, Segal has noticed retailers have taken on a "more conservative" approach to placing orders. Since mid-October, they've been reducing their orders slated for November and December delivery to prevent potential overstocking.
As a result, the company announced Wednesday that it had cut its guidance for sales and revenue for the full financial year.
At the same time, it shared that its net income for the third quarter was
Revenue for the period ended
Excluding its new Paw Patrol movie, which came out at the end of September, the company said revenue was
"PAW Patrol: The Mighty Movie" is a film based on its hit television show and line of toys detailing the adventures of a crew of search and rescue dogs.
Weeks after its debut,
The deal adds more nostalgic toys that foster pretend-play for preschoolers to
"This is a strategically compelling acquisition, the largest in our history and has the potential to accelerate our long term growth and strengthen our relationship with parents in the earliest years of their child's life," Rangel said.
He was equally enthusiastic about a recent global toy licence agreement
The new Dora toy collection is expected to launch in the fall of 2024 and include figures, dolls, playsets, vehicles, plush, role-play, games and puzzles, inspired by Dora, her monkey companion Boots and other characters.
This report by The Canadian Press was first published
Companies in this story: (TSX:TOY)
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