U.S. Toy Industry Experiences Two Percent Growth in 2010
According to The NPD Group, U.S. retail sales of toys generated $21.87 billion in 2010 compared to $21.46 billion in 2009, an increase of 2 percent. Strong fourth quarter sales, which experienced an increase of 3 percent over fourth quarter 2009, saw revenues top $10.2 billion, representing close to half of the year-end total, with December 2010 generating $5.64 billion, a 4 percent increase over December 2009.
Looking at revenue sales performance across super-categories, plush and building sets saw the most significant increases at 18 percent and 13 percent, respectively. Outdoor & sports toys realized an increase of 9 percent, while dolls and infant/preschool both experienced increases of 6 percent. Youth electronics, action figures/accessories/roleplay, and games/puzzles super-categories experienced the most significant declines when compared to 2009, at 22 percent, 15 percent, and 9 percent, respectively.
Unit sales mirrored revenue sales trends in most respects, with the largest increases coming from dolls, building sets, and outdoor & sports toys super-categories showing respective increases of 23 percent, 13 percent, and 12 percent, while overall unit sales were up 4 percent.
Retail channel performance was mixed, with online/internet sales experiencing the most revenue growth over 2009 at 22 percent. The toy stores and food/drug channels also saw growth of 4 percent and 6 percent, respectively. The only channels to experience loss in share were department/major chain and mass merchant/discount, with respective declines of 11 percent and 2 percent.
Top properties for the year based on total dollar sales (in alphabetical order) included Barbie, Crayola, Nerf, Star Wars, and Toy Story. Licensed toys represented 25 percent of total industry sales in 2010. Based on dollar sales, Cars: The Movie, Disney Princess, Star Wars, Thomas and Friends, and Toy Story topped the list of 2010’s bestselling licensed properties (in alphabetical order).
Mattel Reports 2010 Q4 and Full-Year Results
Mattel, Inc., reported 2010 fourth quarter and full-year financial results. For the fourth quarter, the company reported net income of $325.2 million, or $0.89 per share, compared to last year’s fourth quarter net income of $328.4 million, or $0.89 per share. For the year, the company reported net income of $684.9 million, or $1.86 per share, compared to last year’s net income of $528.7 million, or $1.45 per share.
For the fourth quarter, net sales were $2.12 billion, a 9 percent increase from $1.96 billion last year, and included an unfavorable impact from changes in currency exchange rates of 2 percentage points. On a regional basis, fourth quarter gross sales were up 11 percent in the U.S. and were up 6 percent in international markets, which included an unfavorable impact from changes in currency exchange rates of 5 percentage points. Operating income for the quarter was $428.6 million, or 20.2 percent of net sales.
For the year, net sales were $5.86 billion, an 8 percent increase from $5.43 billion last year, and included an unfavorable impact from changes in currency exchange rates of 2 percentage points. On a regional basis, full-year gross sales were up 9 percent in the U.S. and were up 6 percent in international markets, which included an unfavorable impact from changes in currency exchange rates of 4 percentage points. Operating income for the year was $901.9 million, or 15.4 percent of net sales, compared to the prior year of 13.5 percent of net sales.
Fourth quarter worldwide gross sales for the Mattel girls and boys brands business unit were $1.27 billion, up 9 percent versus a year ago. Worldwide gross sales for the Barbie brand were up 8 percent and worldwide gross sales for other girls brands were up 29 percent. Worldwide gross sales for the wheels business, which includes the Hot Wheels, Matchbox, and Tyco R/C brands, were down 4 percent. Worldwide gross sales for the entertainment business, which includes Radica and games and puzzles, were up 12 percent for the quarter.
For the year, worldwide gross sales for the Mattel girls and boys brands business unit were $3.66 billion, or up 11 percent. Worldwide gross sales for the Barbie brand were up 7 percent. Worldwide gross sales for other girls brands were up 16 percent for the year. Worldwide gross sales for the wheels business were down 2 percent. Worldwide gross sales for the entertainment business were up 27 percent.
Fourth quarter worldwide gross sales for the Fisher-Price Brands business unit, which includes the Fisher-Price core, Fisher-Price Friends, and Power Wheels brands, were $775.8 million, up 6 percent. For the year, worldwide gross sales for the Fisher-Price Brands business unit were $2.22 billion, up 2 percent.
Fourth quarter gross sales for the American Girl Brands business unit, which offers American Girl-branded products direct to consumers, were $273.2 million, up 8 percent. For the year, gross sales for the American Girl Brands business unit were $486.6 million, up 5 percent.
Jakks Pacific Appoints Giochi Preziosi as Partner for Monsuno
Jakks Pacific announced that the Giochi Preziosi Group (GP) has been appointed as the exclusive marketing and distribution partner in several major European markets—including the United Kingdom, France, Spain, Italy, and Germany—for toys based on Monsuno, the animated television series in production by Pacific Animation Partners LLC, a joint venture between Jakks and Dentsu Entertainment USA.
Jakks Pacific is the master toymaker for the Monsuno toy line, which is expected to hit U.S. retail shelves to coincide with the U.S. TV series premiere anticipated for late fall 2011 or spring 2012. GP will manage the sales, marketing, and distribution of all Jakks’ Monsuno toy products in Europe.