Frozen 2 is proving to be red hot for Jakks Pacific. The California-based toymaker’s Q3 2019 net sales increased 18% to US$280.1 million, driven by strong initial sales for products related to the upcoming Disney film.
This marks the largest year-over-year quarterly growth for the toymaker in nearly five years, according to CEO Stephen Berman. Online sales, specifically, were up 32% compared to Q3 2018. The toyco’s Disguise and Nintendo brands also contributed to increases.
Gross profit in the third quarter was US$80.8 million, an increase of 25%. Adjusted EBITDA, meanwhile, was up 64% to US$44.1 million.
This growth follows a difficult period for Jakks Pacific. Q1 and Q2 2019 saw declines for the company, with licensed properties like Incredibles 2, Moana and Tsum Tsum contributing to a drop in sales.
Moving forward, the toymaker expects its sales will increase approximately 5% year-over-year compared to fiscal 2018 and anticipates this growth will continue into 2020.
In other Jakks news, CFO Brent Novak will leave the company in December 2019, and a search is underway for his replacement. Novak joined the toyco in April 2018.