Jakks Pacific has reported net sales of US$236.7 million for Q3 2018, a drop of 10% compared to the same period last year. The LA-based toyco has initiated a plan to reduce its global workforce and consolidate operations in 2019 in an effort to reduce overhead.
This strategic move falls in line with similar plans announced by Jakks’ competitors in the toy space; Hasbro intends to make “meaningful organizational changes” that will affect a single-digit percentage of its global workforce, and Mattel is cutting more than 2,200 jobs after its worldwide net sales declined 14% to US$840.7 million in Q2 2018.
Despite experiencing three quarters of overall decline, Jakks reported that several of its product lines—including Fancy Nancy (pictured), Incredibles 2, Perfectly Cute, Squish-Dee-Lish and MorfBoard—actually grew in Q3. The company also shared that its proprietary tween cosmetic brand C’est Moi continues to gain momentum.
Jakks achieved net income of US$15.7 million for the quarter, compared to a net loss of US$17.6 million in Q3 2017. Adjusted EBITDA for the period was US$27 million, compared to US$38.6 million last year.
The financial report comes at a time when change might be on the horizon for Jakks. In January, Hong Kong Meisheng Cultural Company expressed interest in buying additional shares to bring its interest in Jakks to 51% of total shares. This proposal was recently reiterated, and Jakks has authorized its advisors to begin engaging in discussions and negotiations with Meisheng.