Films drive toy buzz for Jakks’ two-year run of growth

Encanto and Sonic are two of the hottest performers in the toyco’s 2022 financial report, which notes a Q4 dip in sales but a 28% bump for the full year.
March 10, 2023

Although LA-based Jakks Pacific experienced a sales decline in Q4, 2022 closed with a happy ending for the toyco. 

Adjusted EBITDA for the full year was up by 55% compared to 2021. And annual sales hit US$796 million, which is a 28% year-over-year increase. 

Q4 EBITDA was down by 9.2%, reflecting a 30% dip in sales. The company attributed this drop (and its narrower margins) to forces that are buffeting the industry at large, including unsold inventory and higher shipping expenses. In the report’s CEO overview, Stephen Berman called it “a tremendous quarter and a tremendous year.” 

The costume category was a highlight, with sales increasing by 61% to US$14.2 million in Q4 and by 38% to US$148.8 million for the full year. 

Net sales in the toys/consumer products segment for Q4 dropped by 34% to US$117.7 million worldwide (34% in North America and 35% internationally), but increased by 26% in North America and 28% globally for the full year. And it was a similar net sales story in dolls/role-play/dress-up (down 41% in Q4, up 31% for full year) and action/collectible games (down 5% in Q4, up 51% for full year).

One segment that didn’t follow the pattern was outdoor/seasonal toys, where sales declined by 53% in Q4, and also dropped 33% for the year.

The hottest-performing ranges of 2022 for Jakks were Disney’s Encanto, Sonic, Disney Princess & Style Collection and Nintendo. 

Canada led the way in terms of regional sales growth for the year (47%), with LatAm (45%), Europe (41%) and the US (25%) not far behind.

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