Toy company Character hopes to claw back profits

A TOY crab which has taken the US by storm is be launched in the UK in time for Christmas, says leading toy distributor Character.

The group hopes XiaXia, pronounced ShaSha and developed by the creators of ZhuZhu Pets, will help prop up sales amid a tough festive toy market.

The range of four colourful and crawling crabs, which have 12 changeable shells and come with an extra mini-toy, were due for release in the new year but the launch has been brought forward to the second week of December following success in the US, where one is sold every seven seconds.

Character, which also distributes Bob The Builder and Fireman Sam toys, has reduced its sales forecasts for its current financial year to August but hopes a range of new toys set to be launched over the next few months, including XiaXia, should help it outperform the toys market.

Its new year launches will include toys relating to the BBC’s wildlife programme Deadly 60 about the world’s 60 most deadly animals, and Mike The Knight, a spin-off from a children’s TV programme of the same name.

The group said sales rose 11% to £95m in the year to August 31, while pre-tax profits lifted 20% to £9.1m.

The results were driven by strong demand for ZhuZhu Pets, Peppa Pig and new Scooby Doo products in the UK and overseas, while Fireman Sam sales benefited from the addition of a deluxe fire station. It also added Angry Birds toys to its range.

But analysts expect Character’s sales in the current year to fall by about 10% with flat profits after conditions on the high street worsened.

The company said: “Christmas trading has suffered to date as a direct result of the abnormally temperate climate but also the exceptionally difficult retail market in general.

“It is therefore even more important for us than normal to focus on reinvesting in our brands to keep them both fresh and novel.”

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