JAKKS Pacific, Inc.'s JAKK subsidiary, Disguise, a prominent global leader in the costume industry, has entered into a multi-year licensing agreement with SEGA of America.

The deal grants Disguise exclusive rights to create Sonic the Hedgehog costumes for distribution across North America, Europe, the Middle East, Africa and Latin America. Disguise will be the sole manufacturer for products based on the Sonic the Hedgehog core IP.

JAKK’s Disguise Strengthens Sonic Portfolio With New Deal

Disguise has previously developed full costume lines based on popular Sonic the Hedgehog properties, including Sonic Prime, Sonic the Hedgehog 2 and the upcoming Sonic the Hedgehog 3. These collections have been well-received by fans, reinforcing Disguise's position in the Sonic-themed costume market. The new agreement will allow the company to expand its offerings further.

The exclusive rights to the Sonic the Hedgehog core IP for costumes align with Disguise’s growing global distribution network. The company has a proven track record of delivering high-quality costumes that appeal to a broad audience. This agreement strengthens its relationship with SEGA of America, covering various iterations of the Sonic franchise.

The deal also positions Disguise to advance its design capabilities, incorporating new materials and production techniques. The company is set to expand its range of products, including costumes, masks and accessories, featuring Sonic and other characters from the franchise.

JAKK Expands Brand Portfolio With Strong Licensing Partnerships

JAKKS Pacific continues to build on its strategic partnerships and brand development efforts, particularly within the growing Sonic the Hedgehog franchise. Through sustained collaboration and a strong product lineup, the company is seeing positive momentum in both toy and costume segments. Disguise, a leader in the costume market, is also expanding its offerings with popular properties and strengthening international presence.

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Shares of JAKKS Pacific have lost 27.5% in the past six months compared with the industry’s 23.4% decline. Although its shares have trended downward, the company is well-positioned to capitalize on its strategic growth initiatives, including international expansion, licensing agreements and operational improvements.

JAKK’s Zacks Rank & Key Picks

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

Some better-ranked stocks from the Zacks Consumer-Discretionary sector are  Life Time Group Holdings, Inc. LTH, American Outdoor Brands, Inc. AOUT and Ralph Lauren Corporation RL.
 
Life Time Group presently sports a Zacks Rank of #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
 
The company delivered a trailing four-quarter earnings surprise of 21.6%, on average. The stock has gained 132.5% in the past year. The consensus estimate for Life Time Group’s 2025 sales and EPS implies growth of 12.9% and 37.9%, respectively, from the year-ago levels.
 
American Outdoor
holds a Zacks Rank #2 (Buy) at present. The company delivered a trailing four-quarter earnings surprise of 79.6%, on average. The stock has gained 29.3% in the past year.
 
The Zacks Consensus Estimate for American Outdoor’s fiscal 2025 sales and EPS indicates growth of 3.7% and 93.8%, respectively, from the year-ago levels.
 
Ralph Lauren presently carries a Zacks Rank of #2. The company delivered a trailing four-quarter earnings surprise of 6.5%, on average. The stock has gained 27.6% in the past year.
 
The consensus estimate for Ralph Lauren’s fiscal 2025 sales and EPS implies growth of 5.8% and 16.5%, respectively, from the year-ago levels.

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This article originally published on Zacks Investment Research (zacks.com).

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