WORLD NEWS

Jakks Pacific’s net sales down 13% in fiscal 2017

Published on: 26th February 2018

Net sales of $613.1m reported for the year, with declines attributed in part to the Toys R Us bankruptcy filing.

Jakks Pacific reported net sales of $613.1m for fiscal 2017, a decline of 13% compared to $706.6m in 2016. The company’s net sales in Q4 2017 were $136.6m (down from $167m the year before).

Fiscal 2017 saw declines for Star Wars, Frozen and Tsum Tsum, but those losses were partially offset by strength in various DC Comics products, Moana, Squish-Dee-Lish and Tangled. The company reported that multiple factors contributed to the losses, including Toys R Us filing for bankruptcy protection and softness among a number of legacy products lines that were not offset by new launches.

Net loss for the fiscal year was $83.1m, while net loss for the fourth quarter in 2017 was $30.4m.

Adjusted EBITDA in 2017, meanwhile, was $15.8m, compared to $41.7m the year before. Adjusted EBITDA in Q4 specifically was negative $6.8m, compared to positive $4m in Q4 2016.

Moving forward, Jakks Pacific plans to expand its retail private label programmes and exclusive product initiatives in 2018. The company’s expectation for 2018 is to grow sales modestly and return to profitability, having reported losses in Q3, Q2 and Q1 of 2017.

According to the toymaker, Hong Kong Meisheng Cultural Company Limited expressed interest in January to buy additional shares and bring its holdings to 51% of Jakks’ shares. A committee of independent members of Jakks Pacific’s board of directors has been formed to evaluate the expression of interest.

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