Disney’s Frozen II, Disguise and the Nintendo license has helped Jakks Pacific to the strongest quarter in year on year sales the toymaker has seen in the past five years.
Net sales have increased 18 per cent to $280.1 million compared to the $236.7 million for the same period in 2018. Sales have been boosted largely by strong initial sales of Disney Frozen II products.
The firm’s Q3 2019 gross margin hit 28.9 per cent, up from the 27.2 per cent in Q3 last year.
Jakks chairman and CEO, Stephen Berman, said: “We are pleased to report solid results across several financial metrics in the third quarter, as strong sales of Disney Frozen 2, Disguise and Nintendo more than offset the declines of some older products.
“Our net sales grew 18 per cent in the quarter, the strongest quarterly growth in year-over-year sales we have seen in nearly five years, led by online sales of our products, which were up 32 per cent compared to last year. More importantly, we were able to improve gross margins and tightly managed expenses, resulting in a 64 per cent year-over-year increase in Adjusted EBITDA.
Buoyed by the Q3 results, Jakks now expects to finish the year in a position of strength, driven by the predicted high performance of Frozen II, Nintendo, Disney Princess and X-Power Dozer throughout this Christmas period.
“We expect to close out the year on a strong note, and carry momentum into 2020. We remain committed to containing costs and managing our balance sheet prudently.”
The firm has also announced that its chief financial officer, Brent T. Novak will leave the company in December this year to pursue other opportunities. Jakks is currently conducting a search for its next CFO.
Berman added: “Brent has been a valued member of the Jakks team since joining the company in April 2018. We wish him well in his future endeavours.”
Novak said: “I appreciated the opportunity to work with Stephen and the JAKKS team, and assisting in the completion of the recapitalisation transaction in August 2019.”