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Sep 30, 2023
JAKKS Q3 2023 Earnings Report
JAKKS Pacific's financial performance in Q3 2023 was reported, featuring a mix of sales decreases and margin improvements.
Key Takeaways
JAKKS Pacific reported a decrease in net sales by 4% year-over-year, but gross margin increased by 600 basis points. Operating income and net income attributable to common stockholders increased compared to Q3 2022.
Net sales decreased by 4% year-over-year to $309.7 million.
Gross margin increased by 600 basis points to 34.5%.
Operating income increased to $62.4 million from $53.7 million in Q3 2022.
Net income attributable to common stockholders increased to $47.8 million, or $4.53 per diluted share.
Revenue by Segment
Forward Guidance
The company is carefully navigating towards the end of the year given uncertainty about consumer behavior and is focused on maximizing its presence across the EU.
Positive Outlook
- Action Play & Collectibles business was up 43% in the quarter.
- Inventory levels are down 37% from last year.
- Opened a new office and warehouse in Italy to better serve the European market.
- Evergreen category assortment and product lines have never been stronger.
- The company is exceeding its own internal expectations for the full-year.
Challenges Ahead
- Retail activity is slowing.
- Retail sell-through at Top 3 accounts in the US were down low single digits on a year-to-date basis.
- Costumes business seasonality returning to more traditional levels.
- 2023 Halloween shopping in the US was a bit softer overall.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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