Jakks Pacific is flying high on its strongest earnings in five years.
The company released its fourth quarter and full year 2021 results this afternoon, beating estimates despite continued supply chain challenges. The strong performance was supported by demand and sales of Jakks ily 4Ever Disney doll collection at Target, Super Mario and Sonic the Hedgehog merchandise, ReDo and Heart Supply skateboards and Disney-inspired toys. Encanto.
The company says its net sales reached $621 million last year, a 20% increase from $515.9 million in 2020. At 29.5%, Jakks’ gross margin reached its highest level since 2016 while operating profit of $38.8 million hit its highest level in more than a decade. The company’s fourth-quarter sales soared 47%.
“We close 2021 with immense pride in the performance of our team, delivering great products and great results in a challenging operating environment,” said Stephen Berman, President and CEO of Jakks Pacific. “We continued to see exceptional top line growth across a wide range of brands and categories, and continued margin expansion, despite an unprecedented increase in supply chain costs. Ocean freight, shipping and trucking costs all had a significant effect on our quarterly results. These developments have forced us to implement a price increase for the second half of 2022 to offset some of these higher costs. We continue to meet these challenges to meet our customers’ orders and ensure that the shelves are full. »
On a call with analysts, Berman noted that some sales that had been left on the table due to late deliveries in the third quarter were pushed back into the fourth quarter and helped boost sales.
For the year, net sales of Toys and Consumer Products increased 48%, while Fancy Dress Costume sales increased 21%.
With the Toy Fair season absent, Berman says Jakks Pacific maintains a strong outlook for the future as the company strives to maximize promotional opportunities this year and begins unveiling its spring 2023 product collection.
In the coming months, Jakks will launch a new wave of Encanto– inspired products as well as a solid collection of Paramount Pictures inspired toys sonic the hedgehog 2.