Spin Master gets boost from Melissa & Doug deal, sees slow spending through 2024

Spin Master Corp. says it continues to face challenges from inflation, higher interest rates and a slowdown in consumer spending, including on toys, that it predicts will remain through least the end of the year.

The Toronto-based company, whose toy and entertainment brands include Paw Patrol, Bakugan and Hatchimals, has reduced the average prices of its toys by nine per cent for 2024, the CEO said on the call.

"With rising prices and basics like shelter, food and energy, consumers are feeling the pinch," Max Rangel, president and CEO, told analysts on a conference call Wednesday.

"We expect this environment will continue throughout 2024 as consumers manage through the impact of high interest rates and inflation," he added.