Heading into the all-important holiday season, Spin Master has already generated more than US$1.61 billion in revenue this year, which is a 15.1% bump over the same period in 2023 (US$1.4 billion). 

This growth spurt was bolstered by a strong retail performance in Q3, the results for which were reported yesterday at market close. Overall, Spin’s revenue for the three-month sales period from July to September was up by 24.7% to US$885.7 million, far surpassing last year’s third-quarter take of US$710 million. 

Toys were the company’s standout segment in Q3, with revenue (up 34% to US$810.9 million) and gross product sales (up 36% to US$922.7 million) both spiking in equal measure. Global president and CEO Max Rangel attributes part of this success to the strong performance of Spin’s latest acquisition Melissa & Doug, which contributed US$155 million in Q3 revenue all on its own and drove a 55.8% sales increase in the preschool, infant & toddler and plush category. 

Offsetting this growth, Spin’s entertainment and digital games verticals both posted double-digit losses this quarter. Entertainment revenue was down by 41.5% to US$37.1 million compared to last year’s third-quarter results. But the toyco attributes this slide to the absence of a major film release to rival PAW Patrol: The Mighty Movie, which came out last September. Digital games took a softer 16.8% revenue hit to US$37.7 million, thanks to a lower volume of in-game purchases in social role-playing title Toca Boca World. 

Looking ahead, Spin’s CFO Mark Segal forecasts that gross product sales and revenue for the toys segment will be in line with 2023, taking Melissa & Doug out of the picture. He also expects that the iconic wooden toymaker will generate between US$370 million and US$375 million in revenue by year’s end.