Jakks Pacific reported financial results for the third quarter ended 30 September 2024 after close of trading on NYSE (9pm UK time).
Third Quarter 2024 Overview
NB – GBP 1 = USD 1.29
- Net sales were $321.6 million, a year-over-year increase of 4%
- Toys/Consumer Products net sales were $264.3 million, a year-over-year increase of 7%
- Toys/Consumer Products net sales year-to-date are $451.8 million, a year-over-year decrease of 2%
- Costumes net sales were $57.3 million, a year-over-year decrease of 10%
- Costumes net sales year-to-date are $108.5 million, a year-over-year decrease of 11%
- Gross profit of $108.8 million, up 2% compared to $107.0 million in Q3 2023
- Year-to-date gross profit of $177.5 million, down 6% compared to $189.6 million in the comparable period in 2023
- Operating income of $68.1 million (21.2% of net sales) in Q3 2024 vs. $62.4 million (20.1% of net sales) in Q3 2023
Stephen Berman, CEO of Jakks Pacific, said: “We’re pleased to share the results of a very strong third quarter. For many years, our largest shipping quarter has been the third driven by our focus on the FOB selling model. This year is no exception, with the US business having its biggest shipping quarter in ten years. The yearly plan is on track to reach its goals. With some difficult first-half revenue comparisons behind us, total company sales increased 4% year-over-year in the quarter. Our gross margins remained strong at 33.8%, and our overhead-related cost growth slowed to deliver quarterly operating margin of 21.2%, a slight improvement over last year. Each of our Toys/Consumer Products divisions delivered sales growth in the quarter. Dolls, Role Play/Dress-Up was up 5.5% to $146.9 million, Action Play & Collectibles was up 5.4% to $98.8 million and Outdoor/Seasonal Toys was up 42.4% to $18.7 million.
“Our Costumes business, as anticipated, reflected softness due to customers recalibrating to lower Halloween consumer demand for costumes versus prior year. Globally, Costumes were down 10.1% in the quarter and 11.3% year-to-date.
“We are encouraged by some of the early consumer reactions to our new Fall 2024 products. We are now confident about finishing out this year as planned while building on retail momentum to deliver a robust 2025.”
Balance Sheet Highlights
The Company’s cash and cash equivalents (including restricted cash) totaled $22.3 million as of September 30, 2024 compared to $96.4 million as of September 30, 2023, and $72.6 million as of December 31, 2023.
Inventory was $63.5 million, compared to $68.8 million as of 30 September 2023 and $52.6 million as of 31 December 2023.
