Character Group Plc, the British maker of Teletubbies and Peppa Pig toys, fell the most in more than eight years after saying the collapse of retailer Toys “R” Us Inc. is impacting every market in which it operates.
“Sales have been adversely effected by a combination of several factors, not least of which is one of the world’s largest toy retailers entering into Chapter 11 bankruptcy protection in the U.S. and Canada,” the London-based company said in a statement Wednesday.
Character Group now expects its performance for the year ending August 31 2018 to be significantly below current market estimates, as international customers in particular take a “very conservative approach to purchases.” The stock fell as much as 19.9 percent, the most intraday since March 2009.
Retailer Toys “R” Us, operator of around 1,600 stores across 38 countries, filed for bankruptcy last month, amid a mounting debt load and relentless competition from e-commerce giants such as Amazon.com Inc.
Character Group said it remains optimistic despite tough trading conditions, citing its product development pipeline for next year. It expects cash flow to stay positive and is committed to its dividend policy.
The company won U.K. and Ireland distribution rights for Pokemon toys in September. Its other licenses include the DC Comics and Frozen movie brands.
The stock was down 14.9 percent to 379 pence a share at 1:19 p.m. in London.
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