Shares of Spin Master Corp. fell more than 10 per cent in early trading after it said it expects to report its gross product sales fell about one per cent in 2019 compared with earlier guidance for growth in the low single-digit range relative to 2018.
The shares were down $4.85 or about 13 per cent at $32.45 in trading on the Toronto Stock Exchange after falling as low as $29.99.
The company says the decrease in sales was due to industry-wide softness of toy sales during the shortened 2019 US holiday shopping season and operational performance challenges.
Excluding the impact of foreign exchange, Spin Master says it expects gross product sales for 2019 to be approximately flat relative to 2018.
Spin Master is the company behind several popular toys including Zoomer, Bakugan, Hatchimals, Air Hogs and Paw Patrol.
Co-chief executive Ronnen Harary says that despite the solid performance of several of its brands and franchises, it was unable to fully offset the year-over-year decline in Hatchimals sales.
The company is expected to report its full financial results on March 4.
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