The toy industry is on a roll, and Jakks Pacific is the latest public purveyor of toys to report robust second quarter earnings following Hasbro and Mattel this week.
Jakks’ net sales spiked 43% over 2020 and 18% versus the same period in 2019 to best both pre-pandemic and pandemic-era numbers. The results mark the sixth consecutive quarter of growth for the company and come alongside the company’s highest Q2 gross margin percentage since 2016 at 28.4%.
“I couldn’t be prouder of our organization’s execution in the past quarter,” says Jakks Pacific CEO Stephen Berman. “It has been well-publicized within our industry and others the challenges being faced with the supply-chain and logistics, stretching from Asia to the U.S. and Europe. Nonetheless, our teams worked together across offices to deliver product to our customers as well as build up our domestic inventory in preparation for the second half of the year. The focus of the organization as it continues to navigate the pandemic is extremely gratifying and a testament to our agility as a hands-on, customer-focused company.”
Overall, year-to-date sales in the toys and consumer products segment are up 36% compared to 2020 and 28% compared to 2019. The Disguise costumes and seasonal business spiked 37% in Q2 for a year-to-date gain of 31%. Compared to 2019, Disguise sales are down 13% due to a stronger slate of entertainment properties that were doing big business at the box office.
Berman expects to finish the year strong on all fronts.
“Strong consumer demand continues to fuel our ty business and we anticipate strong results from several programs we are initiating for this Holiday season with our largest customers,” Berman says. “We are on track for what we anticipate will be a great Halloween season with a wide range of new introductions including Jurassic World, Minions, Ghostbusters, and PAW Patrol: The Movie.”
Berman will provide additional information on a call with investors and analysts this afternoon.
Source from: https://toybook.com/