Morfboard
Consumer Products

Jakks Pacific reports Q1 losses

Despite a Q1 net sales drop, the US toymaker saw standout performances from outdoor toy Morfboard (pictured) and tween cosmetic brand C'est Moi.
April 27, 2018

California-based toymaker Jakks Pacific reported net sales of US$93 million for the first quarter of 2018 versus US$94.5 million in the year-ago period. The company’s net loss for the quarter was US$36.2 million compared to US$18.3 million in the same period last year.

Jakks’ Q1 2018 gross margin, meanwhile, fell from 31.8% in 2017 to 24.7%. Despite the losses and sales disruption from the Toys “R” Us bankruptcy, the toymaker saw strong results for a number of its brands, including Incredibles 2, Disguise Costumes, Tangled: The Series, Squish-Dee-Lish and DC Toddler Dolls.

Other Q1 standout products for the company were outdoor action toy Morfboard (pictured)—the bestselling scooter currently at Target—and tween cosmetic brand C’est Moi. Sales of components and accessories for both brands have been strong both in store and online, according to Jakks.

Moving forward, the company is anticipating positive results from its upcoming fall lines that will include Morfboard Xtensions, Real Workin’ Buddies Mr. Banks, Pop A Zit, Fancy Nancy, Harry Potter, Incredibles 2 and Mega Man. An improved 2018 compared to last year is still expected, despite ongoing disruptions related to the Toys “R” Us bankruptcy and liquidation.

Jakks’ Q1 results are the first under the company’s new EVP and CFO, Brent Novak, who joined the ranks earlier this month after a stint as CFO of Ixia Business Group.

As for a pending expression of interest from Hong Kong Meisheng Cultural Company Limited to buy additional shares and bring its holdings to 51% of Jakks’ shares, a committee of independent members of Jakks Pacific’s board of directors continues to evaluate the situation, as well as other possible interests.

About The Author
Jeremy is the Features Editor of Kidscreen specializing in the content production, broadcasting and distribution aspects of the global children's entertainment industry. Contact Jeremy at jdickson@brunico.com.

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