Customer concentration
Target and Walmart together represented a very large portion of net sales, so lost shelf space or reduced orders would materially affect revenue.
- Scope
- Target and Walmart
- Materiality
- high
JAKKS Pacific, Inc
JAKKS Pacific designs, sources, markets and distributes branded toys and kid-targeted consumer products, including action figures, toy vehicles, games, costumes and selected furniture and sporting goods items. The company relies heavily on licensed intellectual property and evergreen brands, while also developing proprietary products under its own trademarks.
4,3 %
32,4 %
1,7 %
−17,4 %
1.82
1.41
| % | |
|---|---|
| Toys/Consumer Products | 85% Branded and licensed toys, vehicles, games, furniture and related kid-targeted consumer products. |
| Costumes | 15% Halloween and dress-up costumes sold through retail and seasonal channels. |
JAKKS sells primarily to large mass-market retailers and other consumer channels that buy for resale to children and...
- Mass-market retail chainsprimary
Large U.S. retailers buy broad toy and costume assortments for national distribution and shelf space.
- International retailers and distributorsprimary
Buy products for Europe, Canada, Latin America, Australia and Asia, helping expand the brand footprint.
- Seasonal costume channelssecondary
Retailers and distributors buy Halloween costumes and dress-up products ahead of the seasonal selling window.
- Entertainment/IP-driven toy buyersprimary
Retail partners purchase licensed character products tied to franchises such as Nintendo, Sonic and The Simpsons.
The company is headquartered in Southern California, with corporate headquarters, distribution and IT systems in Santa...
- •Headquartered in Santa Monica and City of Industry, California
- •Most U.S.-based staff is in Southern California
- •Foreign sales were about 27.0% of net sales in 2025
- •International sales are concentrated in Europe, Australia, Canada, Latin America and Asia
- •Manufacturing is principally outsourced to third-party factories in China
- •Distribution centers include the UK, Netherlands, Italy, Belgium, Spain and Mexico
JAKKS focuses on acquiring or licensing evergreen brands and well-recognized IP, then extending those franchises...
01
Grow through licensed and evergreen brandsmedium-term
Licensed IP and durable brands reduce dependence on short-lived toy trends and support repeat retail demand.
02
Expand international distributionmedium-term
International markets are a meaningful growth lever and diversify dependence on U.S. mass retail.
03
Refresh product lines with innovationshort-term
New items and technology help maintain retailer interest and consumer relevance in a crowded toy market.
The business is exposed to customer concentration, licensing dependence and intense competition from larger toy...
License renewal and IP dependence
A meaningful part of the portfolio depends on third-party intellectual property, and failure to renew or secure licenses would reduce product availability.
- Scope
- Licensed toy lines and character-based products
- Materiality
- high
China sourcing and tariff exposure
Third-party manufacturing is principally in China, so tariffs, trade restrictions and logistics disruptions can raise costs and reduce demand.
- Scope
- Manufacturing and import costs
- Materiality
- high
Competitive pressure
Mattel, Hasbro and other competitors can outspend JAKKS on marketing, licensing and retail placement.
- Scope
- Toy and costume categories
- Materiality
- high
Inventory obsolescence
Toy demand can shift quickly, and excess or slow-moving inventory may require write-downs.
- Scope
- Seasonal and trend-sensitive products
- Materiality
- medium
Revenue reserves and customer allowances
Affects revenue timing and net sales comparability
Royalty expense and minimum guarantees
Affects gross profit and prepaid assets
Inventory obsolescence reserve
Can materially affect cost of sales and margins
Goodwill impairment
Could create non-cash impairment charges
Seasonality and quarterly fluctuations
Reduces comparability across quarters
: 28.4.2026