Revenue for Q4 2019, meanwhile, increased 14% to US$473.5 million.
Gross product sales increased in Europe (up 14%) but declined in North America (down 5%) and the rest of the world (down 5%) for the full year. The company’s other revenue segment declined 3% to US$117.9 million due to lower royalty income from products marketed by third parties using Spin Master’s owned intellectual property. Spin Master’s outdoor segment declined 10% to US$86.6 million. Several segments showed very little change, including the preschool and girls segment (down less than 1% to US$516.2 million) and the activities, games and puzzles and plush segment (up less than 1% to US$457.7 million). This growth was driven by strong sales for Bakugan, Monster Jam and DreamWorks Dragons as well as initial shipments for DC licensed products. The boys action and construction segment proved to be a bright spot, however, reporting US$331.4 million in sales (an increase of 149%). “Despite the solid performance of several of our brands and franchises, we were unable to fully offset the year-over-year decline in Hatchimals sales.”
In a statement, Spin Master chair and co-CEO Ronnen Harary said the company’s overall performance in fiscal 2019 was disappointing. The Hatchimals brand also contributed to declines in Q3, Q2 and Q1 2019. The Canadian toy and entertainment company’s net income for the year dropped 58% to US$64.3 million, and gross product sales declined 1% to US$1.69 billion. Spin Master saw revenue drop 3% to US$1.58 billion in fiscal 2019, with sales for its remote control and interactive characters segment falling 40% to US$299.3 million due to weakness in Hatchimals.