Disguise, the global costume division of JAKKS Pacific, has extended its multi‑year licensing agreement with Aniplex for the Demon Slayer: Kimetsu no Yaiba franchise. The new terms grant Disguise the right to produce adult and children’s costumes in North America, Australia, New Zealand, Latin America, Ireland, and the United Kingdom, with first shipments scheduled for 2026. The expansion also covers the entire EMEA market for costume accessories and toy role‑play weapons, effective fall 2025.
The deal is a strategic win for JAKKS Pacific because Demon Slayer is one of the world’s most popular anime franchises, with over 220 million manga copies sold and a film that grossed more than $663 million worldwide. By securing rights in these key regions, Disguise can tap into a large, dedicated fan base that has proven highly responsive to licensed merchandise, potentially boosting revenue and diversifying the company’s product mix beyond its existing evergreen brands.
JAKKS Pacific’s Q3 2025 earnings report, released the same day, showed a sharp decline in revenue and earnings that underscores the contrast between the positive licensing news and the company’s broader financial challenges. Revenue fell 34 % to $211.2 million from $321.6 million in Q3 2024, and diluted EPS dropped 62 % to $1.74 from $4.64. The miss was driven by a 41 % drop in the Toys/Consumer Products segment and a modest 4 % decline in the Costumes segment, reflecting weaker demand for core product lines amid tariff pressures and delayed retail toy set launches.
Management attributed the earnings shortfall to a combination of macro headwinds and inventory build‑ups. Tara Cortner, President and GM of Disguise, noted that while the Demon Slayer partnership is a “tailwind” for future growth, the company is still navigating higher raw‑material costs and a slower‑than‑expected rebound in the broader toy market. The company’s cash position remains strong at $59.4 million, and it has not issued any new debt, giving it flexibility to invest in high‑margin licenses and to weather short‑term demand volatility.
Despite the earnings miss, the licensing expansion signals a long‑term confidence in the Demon Slayer franchise and in JAKKS Pacific’s international expansion strategy. The company has not yet provided updated guidance for the remainder of 2025, but the deal is expected to add a new revenue stream that could offset the current decline in core segments. Analysts are watching to see whether the increased market reach translates into higher sales volumes and whether the company can leverage its cost‑control measures to improve margins in the coming quarters.
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