Jakks Pacific is continuing its positive momentum with another record quarter.
The company reported second quarter earnings today with net sales of $220.4 million, a whopping 96.2% increase versus the same period last year. Jakks’ core toy and consumer products sales spiked 82.6% while the Disguise costumes division scored a 132.2% increase over last year.
It’s a familiar tale in the age of inflation and supply chain issues as Jakks‘ gross margin took a hit versus Q1 2021 despite the across-the-board spikes in sales. Jakks’ operating income was $23.7 million in Q2 versus just $1.8 million in Q2 2021.
“Our past quarter’s results are extremely gratifying,” says Stephen Berman, CEO of Jakks Pacific. “The teams collaborated and executed at the highest level — chasing exceptional demand for our product, and relentlessly engaging with our manufacturers, customers, and vendors to set everyone up for a great back part of the year. We’re excited to continue to delight our consumers with a tremendous offering across our toy, consumer product, and Halloween ranges, both on-shelf and online, and in the U.S. and internationally.”
Berman notes that the voracious demand for products tied to Disney’s Encanto and SEGA’s Sonic the Hedgehog lines continued to drive strong sales while Disguise shipped more than $71 million in products, the highest Q2 level since joining Jakks in 2008.
“Despite the continuation of supply-chain cost pressures, we nonetheless recorded our first profitable second quarter in 10 years,” Berman says. “We have also accelerated our importation of product to support the second half of the year and mitigate our traffic at the ports during the peak season.”
For the first six months of the year, Jakks’ toy and consumer products sales are up 61% versus last year while Disguise spiked 134% compared to the first half of 2021.
