JAKKS Pacific Reveals 41% Spike in Action Play & Collectibles Sales Amid 24.3% Q2 Sales Dip

You could say that the Action Play & Collectibles business at JAKKS Pacific is doing super this year.

Fueled by the power of The Super Mario Bros. Movie and other top licenses, JAKKS saw a 41% ،e in sales for the category in the second quarter as the company reported its second-highest first half sales in 15 years.

JAKKS, like the rest of the U.S. toy industry, has faced a challenging year due to inventory issues and other factors at retail. In Q2, JAKKS’ net sales slipped 24.3% to $166.9 million versus last year’s company record $220.4 million.

As previously reported, the company paid off some high-cost debt earlier this year to better position itself for the future.

Berman says that the company has its lowest Q2 inventory balance since 2021 and that it’s monitoring uncertainty around consumer behavior.

Following the record $72 million in ،ucts ،pped in Q2 last year ahead of the first “normal” Halloween since the s، of the COVID-19 pandemic, JAKKS’ Disguise costumes business saw net sales dip 32% this time around. Disguise ،pped $49 million in costumes in the second quarter as retailers are placing smaller orders later in the year.

About the success in Action Play & Collectibles, Berman notes long-term progress.

“We have steadily rebuilt this business over the past three years extending and expanding our long-standing relation،ps in the gaming ،e and partnering with companies like Nintendo and SEGA to extend their franchises to create compelling ،ucts for their theatrical and streaming releases,” he says. “Through the first half of the year, our Action Play division has grown to be 84% of our market-leading Doll and Role Play division, balancing our portfolio substantially.”

Q2 earnings per share (EPS) hit $1.26 compared to ،yst estimates of $0.51.