TOY 0.00% 8.9¢ toys'r'us anz limited

share price effect, page-7

  1. 112 Posts.
    I'm with you on this. It's one of a couple of dogs I stupidly hold just for the div reinvestment. Maybe when my (pre-teen) daughter's children reach my age the share price might be worth something. The Fin Review warned us what to expect last August tho. And since this story we've seen the Bindeez debarcle:

    "Toy seller Funtastic warned yesterday that recent product recalls from Chinese toy manufacturers might affect its financial performance in the 12 months ending December 31.
    "We are currently reviewing the potential impact, if any, to Funtastic and the Australian market as a result of recent China product recalls on the toy industry," managing director Tony Oates said.
    Last week, United States-based toy company Mattel - which makes toy brands like Barbie, Fisher-Price and Hot Wheels - announced a second global recall of products that might have contained too much lead.
    Mr Oates repeated previous forecasts for earnings before interest, tax and amortisation of $43 million for the full year.
    However he warned that any changes to consumer demand might also affect the guidance.
    Funtastic suffered a 2.4 per cent fall in net profit to $4.7 million for the six months to June 30 - owing to the cost of integrating Judius, a business it bought from major shareholder ABC Learning Centres - and lower gross margins in its toys and sporting goods division.
    Funtastic generates most of its profit in the second half, due to Christmas.
    It said recent toy catalogue sales had been positive and that it was on track to start trading in the United States later this year.
    Funtastic declared a fully franked half-year dividend of 4(cents) , the same as for the equivalent period last year and payable on October 19.
    Total revenue for the half year rose 21 per cent to $188.9 million.
    Funtastic also said gross margins for apparel were still under pressure from changing retailer buying patterns, while the performance of its entertainment, homewares and footwear products had exceeded expectations.
    "Our continued diversification strategy to reduce reliance on too few customers continues," the company said in a statement.
    It noted a solid performance from Judius, which it had bought in January.
    Funtastic shares closed down 3.5(cents) to $1.48 yesterday."
 
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