Jakks Pacific Inc. reported third quarter net income last week that dusted Wall Street expectations, thanks in part to strong sales of three new toys.
The Malibu-based toy company has hits on its hand with a remote-controlled airplane called Fly Wheels XPV, a “Little Mermaid” themed vanity station and Speed Stacks, a fast-paced stacking game.
The airplane, which retails for $59.99, is a lightweight plastic foam airplane that takes off from a variety of surfaces and is advertised to fly 20 stories in the air. It’s cheaper than other remote controlled airplanes, and has been named by the Toy Wishes trade publication as a hot Christmas toy.
Jakks saw its third-quarter profit soar 24 percent to $40.5 million, or $1.26 per share, well above analysts’ consensus expectations of $1.18. Sales were up 28 percent to $527 million, from $495 million.
Jakks stock closed at $22, up nearly 20 percent, or $3.80, following the announcement last week.
Jakks also came to an agreement with Van Nuys-based MGA Entertainment Inc. to distribute a line of Bratz and Bratz Babyz branded arts and crafts products. The line will include roll desks, doodle activity mats, sequin/jewel/paint-by-numbers and stampers.
MGA’s Bratz dolls are increasingly popular and have cut into sales of Mattel Inc.’s Barbie dolls.
Jeans, Jeans
In L.A., where the stars dictate what everyone wears, where everyone eats and what watering holes they favor, it’s not surprising that the biggest star of the town’s fashion week was from Hollywood’s elite.
Justin Timberlake and his childhood friend Trace Ayala showed looks from his new line, William Rast, to a star-studded crowd. The line was praised for its casual cool and its “wearability.” The Southern-themed line offers faded baggy jeans for men, dark-washed skinny jeans for women and lots of vintage- and Tennessee-inspired t-shirts and hoodies. Items retail from $58 to $310.
In other fashion week news, homegrown Rock & Republic, a brand known for its high-end jeans, has outgrown the local shows and moved onto the New York stage. Rock, which expects $100 million in wholesale sales this year, spent about $2 million on its big-time debut and took the Big Apple by storm. Thus, the company’s L.A. presence was on a smaller scale.
Rock held a media preview at the Beverly Wilshire and then a party at West Hollywood club Area where loops of the New York runway show played on large plasma screens. The move to a bigger show is all part of R & R;’s expansion beyond a jeans company into a lifestyle brand. The company now has a full line of professional clothing, accessories and fragrances. Chief Executive Michael Ball said this is all part of his greater 15-year plan to go public, now about five years off.
Asset Sale
Hilton Hotels Corp. continues to sell off overseas assets to offset debt after acquiring Hilton Group PLC, its international partner, for $6 billion in February.
This time the Beverly Hills-based hotel chain off-loaded two major hotels in the UK. The 1,054-room Hilton London Metropole and the 794-room Hilton Birmingham Metropole were sold to Tonstate Group Ltd. for about $780 million.
Hilston has sold several European hotels, as well as its stand-alone fitness company, earning the company more than $2 billion since early 2005, according to Hilton Chief Financial Officer Robert LaForgia.
“The hotel transaction market continues to be vibrant,” said LaForgia. “We intend to place further hotels on the market.”
The company recently listed 11 properties across Europe from its Scandic line of 130 hotels and 23,000 rooms on the market. The company is “evaluating alternatives” for the other properties.
Hilton will maintain long-term management contracts with the two well-known hotels.
Staff reporter Emily Bryson York can be reached at (323)549-5225, ext. 235, or at
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