Character Group's momentum continues despite retailer's woes

The AIM traded company’s momentum has been driven by a “strong” performance in the UK and international sales remain steady, except for US sales which remain challenging despite “good progress”.

Meanwhile, trading at OVG-PROXY, the Danish toy distributor in which Character acquired a 55% interest in October, has benefitted from an increase in product ranges available to it for distribution in the Nordic countries since the acquisition.

A statement from Character Group said: “Despite disappointing performances reported by a number of retailers in recent weeks, our products maintained their popularity through the Christmas period, selling-through well at retail, and demand for our products is continuing.”

While its core product range, which includes Peppa Pig, Pokemon and Laser X brands, has continued to grow, along with newer lines such as the Soft n Slow Squishies, while new products and ranges will be unveiled at the London Toy Fair next week.

“Macroeconomic factors, including currency volatility, the potential implications of Brexit and the performance of the UK economy generally, will continue to influence market behaviour in the coming months and our business is not immune from these factors,” said Character Group’s statement.

However, the toymaker’s board remains confident in its strategy and the its flexibility to adapt to change due to a “proven and balanced” product portfolio, new product additions and range extensions and robust UK market demand from customers

Character Group’s shares were up 1.53% at 530.00p at 1116 GMT.