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Sep 30, 2020
JAKKS Q3 2020 Earnings Report
JAKKS Pacific's financial results for Q3 2020 were reported, showing substantial progress on improving profitability.
Key Takeaways
JAKKS Pacific reported a decrease in net sales by 14% to $242.3 million compared to the previous year, but net income attributable to common stockholders increased to $32.1 million. Excluding declines in Frozen and Disguise Halloween costumes, net sales were up 13% year-over-year. The company also highlighted strong liquidity and improved gross margins.
Net sales for Q3 2020 were $242.3 million, a 14% decrease compared to last year.
Excluding declines in Frozen and Disguise Halloween costumes, Q3 net sales increased by 13% year-over-year.
Gross margin improved to 30.8%, up from 28.9% due to disciplined cost control and improved inventory management.
Net income attributable to common stockholders rose to $32.1 million.
Forward Guidance
The company expects continued progress on profitability despite difficult revenue comparisons and anticipates growth in sales and profitability in 2021.
Positive Outlook
- Good performances expected over the holiday season from new introductions from Disney Princess®.
- Good performances expected over the holiday season from new introductions from Disney Frozen®.
- Good performances expected over the holiday season from new introductions from Electronic Arts® APEX Legends™.
- Good performances expected over the holiday season from new introductions from SEGA® Sonic the Hedgehog™.
- Good performances expected over the holiday season from new introductions from Nintendo® Super Mario™.
Challenges Ahead
- Difficult revenue comparisons expected.
- The balance of this year to show continued progress on profitability despite difficult revenue comparisons.
- The company faced significant challenges in the quarter, including difficult comparisons against the successful launch of Disney Frozen 2 last year.
Historical Earnings Impact
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