Toy maker Here Group's Q3 revenue falls, hurt by Chinese New Year holidays

Here

05/06/2026 10:11

Overview
China pop toy maker's fiscal Q3 revenue declined sequentially due to seasonal and supply chain factors
Company widened net and adjusted net loss from prior quarter
Company cut FY 2026 revenue guidance and announced new US$20 mln share buyback program

Outlook
Here Group expects Q4 FY 2026 revenue between RMB130 mln and RMB140 mln
Company lowers FY 2026 revenue guidance to RMB600 mln-RMB610 mln from RMB750 mln-RMB800 mln

Result Drivers
SEASONAL AND SUPPLY CHAIN IMPACT - Co said Q3 revenue decline was mainly due to fewer new product launches and Chinese New Year holidays, which reduced working days and constrained supply chain and delivery capabilities
COST STRUCTURE REFINEMENTS - Co said improved gross margin resulted from strategic cost structure refinements and disciplined execution
FLAGSHIP IP SALES - Q3 revenue was primarily generated from sales of flagship IPs WAKUKU, SIINONO, and ZIYULI

Company press release: ID:nGNX5Xq97r

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
 
RMB 164.7 mln
 
Q3 Adjusted Net Income
 
-RMB 22.9 mln
 
Q3 Net Income
 
-RMB 34.14 mln
 
Q3 Gross Profit
 
RMB 56.86 mln
 
Q3 Operating Expenses
 
-RMB 100.82 mln
 

Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the toys & children's products peer group is "buy."
Wall Street's median 12-month price target for Here Group Ltd is $5.50, about 132.1% above its June 4 closing price of $2.37
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 9 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)