Last Updated on December 27, 2019 by Danielle
Jakks reports losses for Q1 2017 business results due to a decrease in net sales.
Jakks Pacific announced its first quarter business results, reporting a loss due to a decrease in net sales.
The toy company announced net sales of $94.5 M compared to $95.8 M in Q1 2016. Jakks was about 1.3 million short compared to 2016’s first quarter results. On the other hand, gross margin met expectations and was slightly below last year’s result mostly because of price pressure on Funnoodle pool toys and higher capital expenditures last year. Operating income decreased primarily driven by Jakk’s C’est Moi makeup and skincare line, Jakks’s animation efforts, and higher testing costs.
Stephen Berman, Chairman and CEO of Jakks Pacific, mentioned they are content with their first quarter revenue performance, as it met expectations and was consistent with the seasonality of the toy business.
Jakks’ business was boosted by Disney’s Beauty and the Beast in theaters, Disney’s Moana DVD release, Smurfs: The Lost Village in theaters, and the successful launch of the Nintendo Switch. Interestingly, internationally, Disney Tsum Tsum collectibles are experiencing growth. However, as a whole across the industry, the collectibles line of toys are beginning to soften.
Berman noted that peering ahead into the next couple quarters, they will focus on delivering margin improvement and on their long-term strategic goals. Jakks Fall 2017 lineup is looking strong with new products, balancing its own IP and licensed brands.