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JAKKS Pacific (JAKK) Boosts Sales With New Toy Line Launch

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JAKKS Pacific, Inc. (JAKK - Free Report) recently announced the launch of a brand-new line of toys. This development is mainly intended for the forthcoming release of Disney’s “Encanto.” JAKKS Pacific’s “Encanto” series is created for children aged three and above, and is available in retail since Oct 3. Notably, the worldwide release of “Encanto” in theaters is expected on Nov 24.

The new toy line has reciprocal playset features like the Magical Casa Madrigal, Singing Mirabel and Magic Butterfly doll, Sing and Play Mirabel doll, Mirabel and Isabela fashion doll assortment, Mirabel’s Musical Accordion, seven key character plush assortment, and character role play dresses. Also, the product plays original songs and has elements from the forthcoming movie.

Concerning this, SVP of Marketing at JAKKS Pacific, Lisa Tauber, has said, “We took great care to embody the authenticity and magic of the film when creating these products. From the singing Mirabel dolls to the Magical Casa Madrigal playset, JAKKS has developed a magical toy line with several surprises in store for the kids.”

Product Launches Driving Growth

JAKKS Pacific depends mainly on new product launches and strategic partnerships. JAKKS Pacific has collaborations with Disney, Skechers, Nickelodeon, Cabbage Patch Kids and Chico to manufacture toys and merchandise related to these brands.

During the second quarter of 2021, the company extended its contract partnership with BLACK+DECKER. JAKKS Pacific’s current BLACK+DECKER branded toy product lines comprise Tool Belt Set, Electric Power Drill, Power Tool Workshop, and BLACK+DECKER home items like Coffee Maker, Toaster, Mixer and Oven. Also, it witnessed double-digit growth sales in many areas like Nintendo, the Black & Decker in the same period. In the girls and preschool targeted businesses, primarily dolls, dress-up, role-play toys, plush and other consumer products, net sales rose 50% year over year to $49.3 million. This was primarily driven by strong sales of Disney Princess and Raya merchandise.

The company’s robust product launch pipeline also includes the extension of its Perfectly Cute doll and accessory line at Target, and the new launch of toys and collectibles based on Haribo (a global gummy candy brand). In the boy’s division, the company intends to work on the Black and Decker product line along with the re-release of Creepy Crawlers. The company believes that core, basic products and popular entertainment licenses with proven play patterns will drive growth in 2021. Moreover, the company anticipates robust sales of Black & Decker play tools in 2021.

Currently, JAKKS Pacific carries a Zacks Rank #3 (Hold).

So far this year, shares of JAKKS Pacific have gained 145.8% against the Zacks Toys - Games - Hobbies industry’s 11.7% fall. The company has been benefiting from strategic acquisitions, solid international footprint, focus on innovation, and collaborations with popular brands and movie franchises.

 

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