Following two years of stagnant growth and declines, LA-based toyco Jakks Pacific saw its Q2 net sales grow by 43% to US$112.4 million, driven by strength in toys and consumer products.
Thanks in part to improved performances from its licensed products, costumes and toy segments, Jakks’ sales achieved a positive operating margin in Q2 for the first time in years, said CEO Stephen Berman on an earnings call yesterday. The company’s adjusted EBITDA for Q2 was US$5 million—its first positive second-quarter adjusted EBITDA since 2016.
Sales in the girls and preschool segment rose by 50% to US$49.3 million, driven by Disney Princess and the Raya and the Last Dragon product range (pictured). Leaning on this Princess brand boom, the toyco plans to launch a 15-month global program that will highlight all of the Princess characters with content, products and worldwide retail activations.
Jakks Pacific’s boys, action figures, vehicles, roleplay toys and other electronic products category was up in Q2 by 83% to US$19.6 million. Strong sales for video game-related toys, including Nintendo, Sonic and Minecraft products, contributed significantly to the bump.
Net toy and consumer products sales were up by 45% globally to US$81.5 million, compared to last year. This increase was driven by sales surges in North America and Europe as stores in the regions reopened, said Berman.
Costume segment Disguise, meanwhile, saw its sales grow by 37% to US$30.8 million as kids and parents began buying dress-up products again. This upward trend is expected to continue into Q3 and Q4 as Halloween and tentpole kid movie releases such as PAW Patrol: The Movie play out, Berman added.
Net sales for Jakks’ outdoor seasonal segment, which includes ball pits, play structures and skateboards, were flat in the second quarter, finishing at US$12.6 million compared to US$12.7 million in Q2 2020.
Looking ahead, the hope is that a consumer return to in-store shopping and movie-going will drive more growth for Jakks, said Berman