CHAPTER 6
The Money Game: The Financial Realities of the Toy Industry
By now, it should come as no surprise that the financial structure of the toy industry is unique and uniquely challenging.
The primary—and somewhat obvious—reason for this is that approximately 50% of the year’s retail sales are made in the fourth Quarter, with the bulk of those (as much as 25% of the year’s total sales) coming in December. Not to be overly dramatic, but 2 years of effort, planning and expense face a make-or-break 20 days at the end of the year.
Ranking toy companies is never an easy task. Privately held toy companies like MGA Entertainment do not have to report their sales, and there are many conglomerates like Disney, which generates only part of its revenue ...
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