Spin Master slows after logistics issues; WowWee spins up shipments

China 2797 Cons. Discr. - Durables 421 Earnings 607 Quote Watch 375 U.S. 4995

Toy maker Spin Master reported Q4’20 revenues which rose by 3.6% year over year, including an 11.8% drop in gross product sales in North America as a result of reduced sales of previous years’ hits including Hatchimals and Owleez. That hasn’t stopped the firm from running up U.S. seaborne imports, which rose by 36.2% year over year in Q4’20, Panjiva’s data shows. There are signs of moderation in the new year, however, with imports having dipped 5.9% lower in January and February combined.

The firm’s North American business also faced higher sales allowances, where the firm “experienced significant logistics and warehouse issues” which had to be addressed during the year according to CFO Mark Segal. The firm has also seen a rotation in its supply chain with imports from China having climbed by 133.6% year over year in Q4’20 while those from Vietnam and Taiwan dropped, reversing a three year shift away from China.

Spin Master scales up shipments from mainland China

Chart segments U.S. seaborne imports linked to Spin Master by origin on a monthly and three-month average basis. Source: Panjiva

While January and February is normally the deep off peak season for toy importers, there’s nonetheless been a 20.3% year over year surge in total U.S. seaborne toy imports, including a 30.2% increase in February. That likely reflects late deliveries resulting from more widespread logistics challenges than those flagged by Spin Master as discussed in Panjiva’s research of Feb. 22.

Among the major toy importers the expansion in Q1’21 so far was led by Hasbro and Mattel with growth of 32.8% and 24.1% respectively in January and February combined. Among the second tier firms, imports linked to WowWee jumped 147.1% higher after declining throughout 2020, potentially reflecting the launch of its Pop2Play folding activity sets. Jakks Pacific meanwhile has continued to experience a decline in shipments with a 13.8% dip in January and February after earlier logistics challenges.

WowWee reverses slow 2020 as Spin Master, Jakks Pacific slow

Chart segments U.S. seaborne imports of toys by consignee. Source: Panjiva


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