11:07 h / 2021/10/28
Jakks Pacific reported its third quarter earnings yesterday with a 2% decline in total sales attributed to supply chain challenges. Net sales hit $237 million for the quarter, down from $242.3 million during the same period last year.
Overall toys and consumer products sales slipped 8% in Q3 though the company experienced strong growth in the first nine months of 2021. Jakks says that sales grew 11.8% in the first nine months of the year and that toy and consumer products POS sales are up 9% year-to-date. The company’s year-to-date operating income is more than $35 million, its best position since 2015. Additionally, Disguise - its costumes and seasonal division - is up more than 21% this year, with Q3 sales up 16% amid better-than-2019 pre-pandemic sell-through.
Supply Chain Impact
Jakks says that customer orders outpaced its ability to secure ocean passage for its FOB shipments in Q3 and that the “extended domestic importation timeline” has also been a major factor. Overall, any sales declines were attributed to logistical challenges rather than less demand for any product or brand.
Despite supply chain challenges, Jakks joins peers, including Mattel and Hasbro, as well as third-party organizations, such as the National Retail Federation in maintaining an optimistic outlook for the Q4 holiday season.