The toy trade had a difficult first quarter however JAKKS Pacific fared higher than anticipated.
The corporate reported an 11% decline in web gross sales to $107.5 million whereas its margins and revenue elevated barely. On a worldwide degree, JAKKS’ motion play and collectibles enterprise spiked 19% pushed largely by robust gross sales for merchandise tied to The Super Mario Bros. Movie to partially offset a 23% drop in gross sales for dolls and role-play merchandise.
“We’re happy with our year-to-date efficiency as we shut the primary quarter and are excited in regards to the prospects for the rest of the yr,” says JAKKS Pacific Chairman and CEO Stephen Berman. “We shipped greater than $100 million price of product in Q1 for the second consecutive yr and it’s the first time we’ve completed that in back-to-back years since 2009. We’ve got difficult income comparisons all yr, however our vital gross margin enchancment lessened the affect within the first quarter.”
JAKKS is seeing power in worldwide markets this yr with a 7% achieve in gross sales for toys and client merchandise whereas the Disguise costumes enterprise noticed a 64% spike for the quarter. Berman says that a lot of the expansion is coming from Latin America, a sentiment echoed by a lot of the trade.
Trying forward, JAKKS expects to see gross sales enhance within the again half of the yr powered by continued momentum from its gaming-inspired merchandise, Disguise, and upcoming leisure properties, together with Disney’s The Little Mermaid and Want.