“Expected declines” in several properties were offset by the performance of new product segments, says the company.
Jakks chairman and CEO Stephen Berman commented: “As expected, during the second quarter we continued to see the impact of the liquidation of Toys R Us, which offset the positive contribution of several successful products, including Incredibles 2, Squish-Dee-Lish, and MorfBoard. The net sales declines of 11.5% in the quarter and 7.1% year-to-date were primarily the result of the loss of sales to Toys R Us and the short term disruption from its stores’ liquidation throughout the marketplace.”
“We saw expected declines in several properties that were driven by unusually strong entertainment content a year ago, but we were pleased with the performance of new product segments. The investments in the C’est Moi and MorfBoard brands continue to show momentum as distribution broadens.”
“Despite the fact that international sales were negatively impacted by the loss of Toys R Us in many Europe and Asia Pacific markets, we saw a sales increase of over 25% in the second quarter of this year compared to last year, due in part to our geographic expansion, new warehouses, and the launch of Incredibles 2 and Squish-Dee-Lish.”
“As we look ahead to the second half, we will continue to focus on cost management and on new product launches. Our Fall lines are moving forward as planned and we have a strong line-up of new product introductions that are a balanced mix of owned IP and licensed brands, including MorfBoard Xtensions, Real Workin’ Buddies Mr. Banks, Squish-Dee-Lish, Perfectly Cute, TP Blaster, Fancy Nancy, Incredibles 2, and Mega Man.”