JAKKS Pacific's C'est Moi to Launch Teen-Focused Products

JAKKS Pacific, Inc.’s JAKK C’est Moi announced yesterday that it will launch a collection of skin care and wearable color cosmetics specifically for teens and tweens. The collection will be available from Jan 21 on CestMoi.com and Target.com.

The brand’s Gentle Skin Care Collection includes five products priced in the range of $10 to $26. The Color Collection includes 33 products with prices ranging from $8 to $25.

Jennifer Saul, vice president of Marketing for C’est Moi stated, “We’re ecstatic to provide affordable, clean and clinically tested products that deliver on C’est Moi’s core values of education and ingredient safety.”

Move In Line With Plans

JAKKS acquired C’est Moi in October 2016. On its third quarter 2017 earnings conference call, the company mentioned plans to launch the brand in January and February at retail outlets and online stores. So the new move seems to be in line with its strategy.

C’est Moi is a kids color cosmetics and skincare line, and the move marks its entry into the teen category. We believe C’est Moi’s high-growth, high-margin products will resonate with teens and JAKKS’ sales are expected to grow post launch.

The Bigger Picture

The acquisition and launch of the C’est Moi brand is part of JAKKS’ wider goal of diversifying itself. Diversification has become imperative for the company to counter the troubles plaguing its core toy business.

JAKKS Pacific, Inc. Revenue (TTM)

JAKKS Pacific, Inc. Revenue (TTM) | JAKKS Pacific, Inc. Quote

JAKKS is facing a challenging retail environment in toys due to bankruptcy of Toys ‘R’ Us, children age compression and increasing availability of alternatives. Notably, the stock has declined a massive 55.3% year to date, in contrast to the industry’s gain of 43.2%.

The company is increasingly venturing into non-toy categories including cosmetics, pet products, the Halloween business, pool products, candy, juvenile products and other categories.

Zacks Rank and Stocks to Consider

JAKKS Pacific carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the Zacks Consumer Discretionary sectorare Melco Resorts & Entertainment MLCO, Boyd Gaming Corp. BYD and Hilton Worldwide Holdings HLT, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Melco Resorts, Boyd Gaming and Hilton are expected to witness a respective 19.8%, 31.7% and 27.7% increase in 2018 earnings.

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