EsBrand merchandise manufacturer Jakks Pacific reported a 17.0% year over year drop in revenues in Q2 with a slide in sales of seasonal products resulting as “even the healthiest retailers are uncertain as to how the ongoing pandemic will affect demand for Halloween products” according to CFO John Kimble. The firm’s stock fell by 18.1% the day after the results on July 29 as a consequence.
Panjiva’s data shows that U.S. seaborne imports linked to the firm, which normally peak in September, dropped by 6.7% year over year in Q2. There has nonetheless been a 13.8% expansion in the first three weeks of July including a 14.8% rise in shipments of toys, as opposed to costumes, suggesting that the underlying business is proving robust despite weak seasonal orders.
Source: Panjiva
Jakks’ experience comes amid a backdrop of divergent performances from the major toy manufacturers, shown by Hasbro and Mattel as discussed in Panjiva’s July 27 report. A similar split can be seen among the mid-tier toy firms. U.S. seaborne imports linked to WowWee, maker of Fingerlings, have surged 66.4% higher in the first three weeks of July compared to a 16.2% downturn in Q2 and an earlier slide, potentially reflecting a surge in the new “Baby Shark” line of toys aimed at homeschooling.
Spin Master meanwhile, maker of Hatchimals, had seen steady growth through Q2’20 with a 16.0% year over year increase. Yet shipments have dropped by 35.6% in the first three weeks of July ahead of the shipping of its new fall product line imports including the “Fuggler Funny Ugly Monster” range.
Source: Panjiva
