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 percent of the year’s retail sales are made in the Fourth Quarter. Retailers and manufacturers also call the weeks between November 1 and December 24, the “hard eight,” the critical selling season. In recent years with the changes in buying habits, faster delivery from online merchants, waiting for sales, and in a tough economy consumers waiting till the last minute to shop; more and more those final sales have moved into December—by some estimates as much as 25 percent of the year’s ...
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