The bankruptcy of Toys R Us meant the nation's toymakers lost one of their biggest customers.
Hasbro's sales plunged 12% last year as it lost out on "hundreds of millions of dollars in revenue from Toys R Us," CEO Brian Goldner said on the group's fourth-quarter earnings call.
The maker of Transformers, Nerf, and My Little Pony isn't expected to restore its revenue to pre-Toys R Us levels until next year. However, its pending takeover of Entertainment One — the TV-and-movie studio and distributor behind Peppa Pig — could accelerate its recovery.
Similarly, Mattel's revenue dropped 11% in 2017 and a further 8% in 2018. Sales at the maker of Barbie, Hot Wheels, and Fisher-Price aren't expected to fully recover until 2022.
Spin Master, which makes Hatchimals and Paw Patrol toys, suffered an especially sharp slowdown. After surging more than 30% in 2016 and 2017, its sales slowed to just 5% in 2018, and are set to rise just 1% this year.
Jakks Pacific — which makes Harry Potter, Incredibles 2, and Nintendo toys — has also suffered. Its revenue shrunk 13% in 2017, and fell a further 7% in 2018.