Slowdown in Sales Growth Anticipated

The toy industry expects retail sales growth to slow to 4% in 1998 due to uncertainty about overseas markets, especially in Asia. Toy Manufacturers of America, an industry trade group, said sales in 1997 grew 8% to $22.6 billion, helped by such hits as Tyco Toys Inc.’s Sing ‘n Snore Ernie, Lewis Galoob Toy Inc.’s Star Wars, Ty Inc.’s Beanie Babies, and a slew of virtual pets. Plush toys and action figures saw the biggest increases in 1997, with shipments growing 38% and 27%, respectively, over 1996. Though not included in overall toy industry figures, shipments of video games increased 45%, from $2.9 billion to $4.3 billion. . . . In a separate development, TriStar Pictures and its consumer products division, Sony Signatures, have instructed licensees to keep images of Godzilla under wraps until the movie about the lizard-like beast opens May 20.