Toys group revises down its annual sales and pre-tax profits forecasts

Oldham-based toys retailer, The Character Group, warned that sales and pre-tax profits will be “marginally below current market expectations”, in a trading update ahead of its AGM this morning.

The business revealed that revenues in the all-important four months to December 31, 2022, were around 42% below the same period in 2021, with USA sales showing a marked drop.

It said trading conditions across all the group’s markets have remained challenging.

However, it added that the group has a strong product portfolio of both in-house developed and distributed products and its customers have shown great enthusiasm for its offering at previews.

With innovative and exciting new brand concepts, additions and extensions being unveiled at the London Toy Fair next week (January 24-26), Character Group said it is very encouraged and expects similar reactions from the market to its enlarged portfolio over the coming months.

Despite the tough and challenging start to the current financial year, the board said it remains optimistic that the anticipated rebound will come through strongly in the second half.

Accordingly, the company shall be profitable for the financial year as a whole, however, sales and profit before tax, before highlighted items, are expected to be marginally below current market expectations.

Interim results are expected to be published in May, 2023.