Jakks Pacific had a difficult year, and is placing the blame squarely on the pandemic and related lockdowns. Despite online retail sales jumping 20% in 2020, the LA-based toymaker’s net sales declined by 14% to US$515.9 million.
Net sales for girl-focused toys decreased 11% to US$308.9 million for the fiscal year, and seasonal toy sales were down 21% to US$71.4 million. But sales for boy-skewing items stayed relatively steady at US$80.6 million.
The Disguise costume segment (pictured) saw net sales fall 26% for the fiscal year, due to retailers’ uncertainty around the impact COVID-19 would have on Halloween sales and Jakks’ decision to scale back shipments to retailers with elevated credit risk.
Toycos have had mixed results in the year of the pandemic. Hasbro also saw a net sales decline in fiscal 2020, but Mattel experienced positive growth in toy sales and reported a 2% net sales growth for the year, driven largely by its Barbie line.
Jakks was initially quite positive about its outlook for fiscal 2020, predicting in May that it would be a great year. This was unfortunately followed by declines in every quarter.
In Q4 2020, Jakks Pacific’s net sales fell 16% to US$128.3 million. Brands like Disney Princess, Nintendo and Sonic the Hedgehog performed well in the quarter, but net sales paled in comparison to the success of Frozen 2 products in Q4 2019.
Net sales for the toys/consumer products segment dropped 19% globally in Q4 2020, while net sales for the Disguise costume segment grew 91% in the same period.
Looking forward, Jakks expects its 2021 sales will be bolstered by upcoming content from key partners. The toyco will launch products in support of Disney feature films Raya and the Last Dragon and Encanto later this year. Jakks also anticipates this year will see a return to more normal shopping patterns, especially with regards to Halloween.
In fact, Disguise recently inked a multi-year agreement to design, manufacture, market and distribute costumes, accessories, inflatables, adaptive costumes and kits for Universal Brand Development properties. This deal marks the first time Disguise will hold multi-year portfolio rights to key Universal IPs.