LA-based toyco Jakks Pacific is telling a similar story to Hasbro in its Q3 financials (released yesterday), with core toys experiencing a sales dip and other segments offsetting the losses. 

Jakks generated US$309.7 million in net sales from July through September, which is 4% less than Q3 2022. Driving this drop is an underperforming toys and consumer products segment that was down 9% to US$246 million. CEO Stephen Berman attributes the slump to a declining retail sell-through business in the US and retailers taking 20% less inventory. 

While toys languished, Jakks’ wholly owned Disguise business thrived in the lead up to Halloween. Costumes generated US$63.7 million in net sales this quarter, a 19% uptick compared to last year. 

Just before market close yesterday, Jakks inked a multi-year licensing agreement with New York-based Authentic Brands Group (ABG) to manufacture outdoor products based on ABG’s brands. This range will include skateboards, volleyballs and beach accessories based on Forever 21, Sports Illustrated and Prince, and an initial wave of skateboards for Quiksilver and Element is due out worldwide in fall 2024.