Jakks Pacific has reported costume sales of $49m in Q2, a year-over-year decrease of 31.5%, but remains positive about the Disguise business.
Net sales for Q2 for the whole Jakks Pacific business were $166.9, a decrease of 24.3% year-on-year. First half net sales were $274.4m, a decrease of 19..6% compared to 2022.
Gross profit was $51.2m, a decrease of 15.9% from $60.9m in 2022, while gross margin was 30.7%, up 310 basis points vs Q2 2022.
Stephen Berman, ceo of Jakks Pacific, commented: “I’m pleased to say that the first half of the year has met, and in many cases, exceeded our expectations. Consumers reacted favourably to our new product launches, both supporting the most talked about film releases of the first half of the year, as well as the innovation and excitement we’ve bought to our classic, evergreen product lines.
“Retail sell through accelerated in the quarter from earlier in the year, as customers continued to work down inventory levels and refocus their attention and planning for the annual holiday shopping season.
“Our costume business shipped $49m, substantially lower than last year’s all0time peak of $72m as we see customers ordering more conservatively and later than last year but it was nonetheless the second highest Q2 shipment level in the past 10+ years. We are still anticipating a very strong year in costumes.”
