Toy Sales and COVID-19: Being part of the booming at-home economy has its benefits. One toymaker says retail holiday sales are up more than 30%.
The following written content by Leslie Patton
Celebrating the holidays might be pretty ho-hum, but one area that’s booming is toys.
After a terrible year of remote school, canceled birthday parties and little vacationing, parents and grandparents ridden with so-called “Covid guilt” are spending a lot more on puzzles, crafts and games. And this is setting up the U.S. industry for its best Christmas in years—and maybe ever.
“I’ve been in the toy industry for 30 years, and sales are just about as good as I’ve ever seen them,” said Jay Foreman, chief executive officer of closely held toymaker Basic Fun. Retail purchases of his company’s toys, including Tonka trucks, have been up more than 30% since August and show no signs of slowing down, he said. “Toys are a way for parents to treat their kids when they are so worried about what’s going on in the world.”
Earlier in the year, it looked like the toy industry would be in for another tumultuous period. Sales fell in 2018 and 2019 and were flat in the first three months of the year, as retailers shuttered stores amid the coronavirus pandemic. But after schools closed, parents needed things to occupy their kids while the worked from home, and purchases rebounded.
Through the first three quarters of the year, industry revenue surged 19%, according to researcher NPD Group. And Foreman predicts that demand will stay elevated through the first half of next year as Americans keep social distancing until the vaccine is widespread.
Since the end of March, toymaker stocks have had huge rallies. Mattel, Spin Master and Funko have all more than doubled, compared to a 44% for the the S&P 500. Meanwhile, Hasbro has risen only 30%, somewhat held back by its licenses with Disney and Marvel tying it to the struggling movie industry.
Barbie-doll maker Mattel reported sales that outpaced estimates last quarter—and says toy buying isn’t letting up. Parents are planning to spend the same—or more—on toys for the holidays during the fourth quarter, according to Chief Executive Officer Ynon Kreiz. Read more from Bloomberg.
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