Toy market news

Jakks Pacific posts massive 44% sales spike for Q1 2022

SEGA’s Blue Blur and Disney’s Madrigal family helped to power Jakks Pacific‘s best first quarter sales and earnings per share (EPS) in 14 years

The company reported that net sales in Q1 hit $120.9 million, a 44% spike versus $83.8 million in the same period in 2021. Jakks’ highest Q1 sales since 2008 were powered by strong sales of products inspired by Disney’s Encanto and Paramount Pictures’ Sonic the Hedgehog 2. Additionally, Disguise - Jakks’ costumes and seasonal division - contributed to the gains by more than doubling its Q1 sales versus last year.

Despite the massive growth in net sales, the global supply chain issues took their toll on profit across the board. Gross profit in Q1 2022 was $29.9 million compared to $26.1 million last year.

According to the company, its improved profit margins and lower royalty expenses were no match for the continued increases in freight costs and other business expenses.