Spin Master (TOY) TD Cowen 10th Annual Future of the Consumer Conference summary

Consumer and market trends

• Point-of-sale performance has been stable to moderately positive, with clean inventory levels at retail and strategic shelf management ahead of major launches like the PAW Patrol movie in August 2026.

• Consumers remain resilient despite macroeconomic pressures, with a product mix that includes 50% of items below CAD 20 and a strong omni-channel presence.

• Expansion into value channels, such as dollar stores, has grown over the past two years, diversifying distribution.

Cost management and macro impacts

• Commodity prices, especially resin and freight, are being managed through pricing, product mix, and operational efficiencies.

• Tariff rates have decreased over the past year, providing a tailwind for the second half of 2026, with additional tariff refunds expected.

• Future product lines are being developed with current commodity prices in mind to protect gross margins.

Product strategy and innovation

• Focus on innovation and proprietary products, exemplified by successful launches like Hatchin' Yoshi for the Mario Bros. movie.

• Entry into collectibles and strategic trading cards, including partnerships with Supercell and Universal, and launches like Rainborcons and Hellbreak.

• Emphasis on cross-collaboration between toys, digital games, and entertainment to maximize brand impact, especially with PAW Patrol and Gabby's Dollhouse.