Funtastic sees fruits of Toys ‘R’ Us acquisition in November
Funtastic has seen short-term revenue and profit grow in November, due to its acquisition of Toys ‘R’ Us.
The additional revenue streams afforded by Hobby Warehouse, Toys ‘R’ Us and Babies ‘R’ Us boosted Funtastic’s revenue by 60 per cent to $7.1 million for the first month the business’ traded together, while profit grew 78 per cent to $2 million.
Newly appointed Funtastic CEO and managing director Louis Mittoni said the business is very pleased with the initial synergy, and that further integration will take place over the next six months, including a comprehensive review of all products, customer segments and operations.
“It is indicative of the solid teamwork within our business divisions and the strong connection between shoppers and our brands,” Mittoni said.
“Our e-commerce channels contributed to the larger proportion of the gross profit and the results are a prelude to what we anticipate in the next several years, with the continued relaunch of Toys ‘R’ Us, the launch of Babies ‘R’ Us, and the continuation of our digital-first e-commerce road map.”
Beyond its digital roadmap, Toys ‘R’ Us told Inside Retail last year it would launch several large-format bricks and mortar stores, followed by smaller, ‘retail-lite’ concepts.