Demand for games, puzzles, and activities drove Spin master first quarter product sales, the company said.
The Activities, Games & Puzzles and Plush category saw a 24% increase over the same period last year bringing in $78 million compared to $63 million. Gross product sales increased 14% in Europe, 2.2% in North America and decreased 29.4% for the rest of the World.
Despite the increase, the company recorded a net loss of $26.7 million.
“Q1 2020 was a challenging quarter for Spin Master, as we dealt with both the evolving COVID-19 situation and the carryover effects from the operational challenges we experienced in the second half of 2019,” said Ronnen Harary, Spin Master’s Co-Chief Executive Officer.
“COVID-19 first affected our Asian supply chain early in Q1 and we worked extremely hard to stabilize it by the end of the quarter. As the virus spread to customer markets, we adapted quickly and implemented measures to minimize the potential impact to our people and to Spin Master as a whole.”
The company did borrow $350 million from credit during the quarter. It ended the quarter with $424 million in cash.