Jakks Pacific has experienced an unwelcome though not unexpected downturn in sales for the first quarter 2019.
Net sales dropped 24 per cent compared with the same period in 2018 to $70.8 million, sending profits tumbling 37.5 per cent to $14.3m. The company points to the dissolved Toys R Us – once a major customer for the US toy firm – as well licenses like Incredibles 2 and Moana which have carried over from their movie years but long since hit their peak.
But CEO Stephen Berman says the latter half of the year holds promise.
“The timing of certain key new product launches tied to major theatrical film releases has, as expected, significantly shifted our revenue to the second half of the year,” he says.
“We are looking forward to stronger sales in the second half of the year, which should benefit from a strong slate of entertainment content, notably Frozen 2, as well as Toy Story 4, the 30th Anniversary of the release of Disney’s The Little Mermaid, and Disney’s Gigantosaurus animated TV series.”
Stephen is also expected big things from its own IP, highlighting lines such as TP Blaster: Sheet Storm, Slap Ninja, Pinata Fiesta and Power Dozer.
Though takeover negotiations with Hong Kong-based Meisheng made no formal movement, Jakks did confirm the multi-million dollar deal is still on the table. Meisheng has proposed $50m for 51 per cent of Jakks’ outstanding shares.