Toys “R” Us is making a comeback in the U.S., and that’s great news for Spin Master Corp (TSX:TOY). The popular toymaker behind Hatchimals and the Paw Patrol could get a big boost from the toy store being back in business. Spin Master was hit hard as a result of the Toys “R” Us closures and this could help send the stock back up as it’ll likely lead to stronger toy sales once the retailer is up and running again in the U.S.
While it’s only going to launch of approximately a half a dozen stores as well as an online site, if it’s successful it could lead to a big rebound for not only the retailer but Spin Master’s stock as well. Over the course of the past year, its share price has fallen more than 33% and with a loss in its most recent quarterly results and sales down as well, there hasn’t been a whole lot of reason for investors to get excited about the stock.
However, this news could help give the stock some life even though we don’t know yet if it’ll result in Spin Master selling its products in this new incarnation of Toys “R” Us.
It will still be a long road back for the toy industry in the U.S. to recover and Spin Master could be a good investment to make today, if investors are willing to be patient and wait for the company to rebuild its position in the U.S.
At the end of the day, Spin Master has some good brands in its portfolio that can generate a lot of value not only in the U.S. but around the world. And with the stock near its 52-week low, it could be a great time to buy.
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