Delayed entertainment launches and lockdowns contributed to another difficult quarter for Jakks Pacific. The LA-based toymaker reported US$242.3 million in net sales for Q3 2020—a 14% decline.
Net sales for Jakks’ toys and consumer products segment were down 8% to US$187.3 million for the period. Part of the decline is due to comparisons to Q3 2019, which saw the toymaker’s net sales increase 18% based on strong initial sales for products related to Frozen 2.
The toymaker’s girls-targeted business (including dolls, roleplay, dress-up and preschool toys) shrunk by 11% to US$129.3 million in the third quarter.
The declines were offset, however, by the boy-focused segment, which saw sales increase 9% to US$33.6 million during the same period due to strength in video game brands. This segment also includes action figures, vehicles, electronics and roleplay items.
Additionally, the third quarter was affected by uncertainty around Halloween purchases. Net sales for the Disguise segment dropped 27% to US$55 million in Q3 2020.
Adjusted EBITDA for Q3 2020 was US$42.7 million, down 3% compared to the same period last year.
Despite several difficult quarters, Jakks CEO Stephen Berman said in a statement that he expects the company will end the fiscal year on a “strong note, and carry momentum into 2021.” The toyco will bow new products from brands like Disney Princess, Disney Frozen, Sonic the Hedgehog and Super Mario during the holiday season.
Berman anticipates that sales next year will be buoyed by a stronger entertainment slate, after many theatrical releases set for 2020 were delayed due to lockdowns.