JAKKS Pacific struggled to cope with the challenging retail environment and bucked the trend, with net sales growing 4% in the third quarter to $321.6 million.
Net sales of toys/consumer products reached US$264.3 million, an annual increase of 7% compared with the third quarter of last year.
We are pleased to share very strong third quarter results. For many years, our largest shipping quarter has been the third quarter due to our focus on the FOB sales model. This year is no different, with U.S. businesses enjoying their biggest shipping quarter in a decade. The annual plan expects to achieve its goals this quarter… We are encouraged by some early consumer response to new products for fall 2024. We are now confident we can complete the year as planned while leveraging retail momentum to deliver a strong 2025.
— Stephen Berman, CEO of JAKKS Pacific
JAKKS said every segment of its toy/consumer products business grew in the third quarter, with dolls, role play/dress-up business up 5.5%, action games and collectibles up 5.4%, and outdoor soaring 42.7%. /Seasonal toys.
Meanwhile, net sales at Disguise, JAKKS Pacific’s apparel and seasonal division, fell to $57.3 million, down 10% from last year.
“As expected, our apparel business reflected weakness as customers realigned with Halloween consumer demand for costumes being lower than last year,” Berman added.
For the first nine months of 2024, net sales were down 4%, while toy/consumer products net sales were down 2%.
Digging deeper into the data, JAKKS’s gross profit was $108.8 million, up 2% from $107 million in the third quarter of 2023. Year-to-date gross profit was US$177.5 million, down 6% from US$189.6 million in the same period last year.
The article “JAKKS Pacific bucks the trend, sales of toys and consumer goods grow 7% in third quarter” first appeared on The Toy Book.
