Shortfalls caused by the Toys R Us bankruptcy offset by strong sales in Incredibles 2, Squish-Dee-Lish and DC Toddler Dolls.
Net sales for the first quarter were $93.0m compared to $94.5m reported in the comparable period in 2017. The net loss attributable to Jakks Pacific for the first quarter was $36.2m, or $1.57 per diluted share.
Jakks chairman and CEO Stephen Berman commented: “We are relatively pleased with our sales in the first quarter despite the negative impact caused by the liquidation of Toys R Us which began near the end of the quarter. Despite this sales disruption, we saw several areas of strength, including Incredibles 2, Disguise Costumes, Tangled: The Series, Squish-Dee-Lish and DC Toddler Dolls.”
“The investments in C’est Moi and Morfboard are off to a great start and sales are growing rapidly week after week. Our Morfboard product line, for example, has become the No. 1 selling scooter at Target, and we are seeing strong upselling in various components and accessories both in store and online.”
“As we look ahead to the next few quarters, we will continue to focus on margin improvement and our long term strategic goals. 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, Pop A Zit, Fancy Nancy, Harry Potter, Incredibles 2, and Mega Man.”