An “excellent beginning” to 2021 has seen net sales at the international toy maker, Jakks Pacific increase 26 per cent for the first quarter of the year, to $83.8 million compared to the $66.6 million of the same period last year.
The results, the company has been quick to point out, mark the highest year over year first quarter sales growth since Q1 2015, with “significant improvement in sales, gross margin, adjusted net income, and adjusted EBITDA.”
The results, stated Jakks Pacific’s chairman and CEO, Stephen Berman, are reflective of the efforts that the company has made to “broaden its product line, reduce its operating costs, and cut interest expense.”
“During the quarter, we drove double-digit sales increases in all of our toy divisions: Boys, Girls and Seasonal. We saw strong sales of products tied to video games, including Nintendo, Sonic the Hedgehog and Apex: Legends, a near doubling of sales in Disney Princess, solid initial sales of Raya and the Last Dragon, and continued strength in Black & Decker,” said Berman.
“We also registered strong sales of our own brands such as Perfectly Cute and Redo Skateboards. These sales gains easily offset the expected sales decreases we saw in Frozen, Frozen 2, and Fly Wheels.
“We are especially pleased by our continued success in reducing our operating costs, as reflected by our strong increase in gross margin and lower SG&A costs. Looking toward the balance of the year, we expect to continue to benefit from lean retail inventories and lower operating costs.
“Our retail POS trends remain positive, and we have a well-balanced line of new and continuing products planned for the holiday season. As we have for our 27-year history, we will focus on proven play patterns and our partnerships with world-class license partners and highly recognizable brands.
“As 2021 unfolds, we expect to see a return to more normal patterns of shopping, gift-giving and celebrating Halloween. We believe we are set up very well for a year of increased sales, improved EBITDA and a strengthened financial position, which we expect to generate strong momentum and can position us well for 2022 and beyond.”
Net sales for the first quarter 2021 were $83.8 million, up 26 per cent versus $66.6 million last year. The increase was driven primarily by higher sales of products across the firm’s Toys/Consumer Products segment which were up 28 per cent globally.
Net sales of Disguise costumes were essentially flat compared to last year.
Jakks Pacific recently detailed an extension of its partnership with SEGA of America to expand on its already popular toy line based on the hit video game franchise, Sonic the Hedgehog. The firm also recently picked up the North America toy and dress-up rights to the upcoming PAW Patrol: The Movie, across both Jakks Pacific and its costume division, Disguise.