Jakks Pacific is the third major toyco to announce its Q1 results this year, and sales are looking sluggish. The company’s global net sales for the quarter totaled US$90.1 million—a 16% drop compared to last year’s US$107.5 million. 

Jakks chairman and CEO Stephen Berman attributes the underperformance to a lack of new films to support its core businesses. At this time last year, Jakks was manufacturing and distributing dolls, action figures and playsets for two of 2023’s highest-grossing movies, Illumination’s The Super Mario Bros. Movie and Disney’s live-action remake of The Little Mermaid. But there just weren’t any big theatrical releases to work with in the first quarter this year.

Jakks’ Disguise costume business took the biggest hit in Q1, with net sales down by 25.3% to US$7.16 million. (By comparison, the division sold US$9.59 million in the same quarter last year, and US$9.75 million in 2022.) Toys and consumer products accounted for US$82.9 million of Jakks’ total net sales, but even this segment shrunk down 15.3% from US$97.8 million in 2023. 

Looking ahead, Berman expects business to bounce back in the second half of the year as the company rolls out new licensed toy ranges for Sonic The Hedgehog 3 and The Simpsons (pictured). And in August, Jakks will launch an original line of Wild Manes horse dolls and playsets it has developed with animation and Roblox game partner Epic Story Media. Both companies will be showcasing this new IP at Licensing Expo in Las Vegas.