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Dec 31, 2020
JAKKS Q4 2020 Earnings Report
Reported substantial progress on improving profitability.
Key Takeaways
JAKKS Pacific reported a decrease in net sales for Q4 2020, down 16% compared to the previous year, primarily due to lower sales of Frozen products. Despite the sales decline, the net loss attributable to common stockholders improved. The company's gross margin increased due to lower royalties and improved inventory management, reaching the highest Q4 percentage in ten years.
Net sales were $128.3 million, down 16% year-over-year, but up 16% excluding declines in Frozen products.
Gross margin was 32.8%, up 240 basis points compared to Q4 2019, driven by lower royalties and improved inventory management.
Net loss attributable to common stockholders improved to $11.7 million from $20.6 million in Q4 2019.
Cash and cash equivalents totaled $92.7 million as of December 31, 2020, compared to $66.3 million as of December 31, 2019.
Forward Guidance
JAKKS Pacific expects that toy sales in 2021 will get a boost from a robust slate of entertainment content from our licensing partners, especially Disney.
Positive Outlook
- Toy sales in 2021 will get a boost from a robust slate of entertainment content from our licensing partners, especially Disney.
- Releasing toys in support of Disney’s Raya and the Last Dragon and Encanto.
- The extraordinary success of Disney+ has given families all over the world year-round access to Disney content, which will help keep kids connected to the characters they love and to cherish the toys we make based on those characters.
- Expects 2021 to see a return to more normal patterns of shopping, gift-giving and celebrating Halloween.
- Continued emphasis on core products, margin improvement and cash preservation will lead to improved results in 2021.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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