Frozen 2 heats up Q3 sales for Jakks Pacific

Initial sales related to the upcoming film contributed to an 18% increase for the toymaker after months of declines driven by licensed property performance.
November 7, 2019

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.

Net sales also fell in fiscal 2018 (down 7%), which Jakks attributed to the liquidation of Toys “R” Us in the US and multiple global markets.

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.

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