Spin Master Corp. stock fell 4.2% in Wednesday trading after the toy maker said it now expects a 1% decline in 2019 gross product sales. Previously, the company was guiding for an increase in the low-single digit range. The company said the downward revision is due to weak toy sales in the U.S. during the shortened holiday shopping season. “Furthermore, we did not execute as we have in previous years, at the level we needed to in order to meet our profitability targets,” said Ronnen Harary, Spin Master’s co-chief executive officer in a statement. Specifically, Harary said on a call about the announcement that the company chose the wrong time to launch a new east coast distribution center. “[W]e should not have undertaken a project of this nature at this point in time just as we entered our seasonal shipping peak,” Harary said on the call, according to a FactSet transcript. “Our supply chain has become more complex, the macro environment has become more complex, and our desire to drive efficiencies and cost savings in the midst of this was aggressive and potentially misguided.” Spin Master brands include Paw Patrol and Hatchimals. Spin Master stock has tumbled 21.8% over the last year while the S&P 500 index is up 26.5%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
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