Business
JAKKS Pacific Reports Second Quarter 2024 Financial Results
Gross Margin Rate Improves 130 Basis Points vs. Prior Year SANTA MONICA, Calif., July 31, 2024 (GLOBE NEWSWIRE) -- JAKKS Pacific, Inc. (NASDAQ: JAKK) today
About this update from Jakks Pacific, Inc.
[{"type":"text","content":"Gross Margin Rate Improves 130 Basis Points vs. Prior Year\nSANTA MONICA, Calif., July 31, 2024 (GLOBE NEWSWIRE) -- JAKKS Pacific, Inc. (NASDAQ: JAKK) today reported financial results for the second quarter ended June 30, 2024. First-half net sales for JAKKS Pacific, Inc. were $238.7 million, a year-over-year decrease of 13.0%, primarily attributable to a lack of new content-related product launches, which occurred in the first half of last year. Second Quarter 2024 Overview Net sales were $148.6 million, a year-over-year decrease of 11.0% Toys/Consumer Products net sales were $104.6 million, a year-over-year decrease of 11.3%Costumes net sales were $44.0 million, a year-over-year decrease of 10.1% Gross profit was $47.6 million, a year-over-year decrease of 7.1% from $51.2 millionGross margin was 32.0%, up 130 basis points vs. Q2 2023Operating income was $7.6 million (5.1% of net sales) vs. $16.4 million (9.9% of net sales) in Q2 2023Net income attributable to common stockholders was $5.3 million or $0.47 per diluted share, compared to net income attributable to common stockholders of $6.1 million or $0.58 per share in Q2 2023Adjusted net income attributable to common stockholders (a non-GAAP measure) was $7.3 million or $0.65 per diluted share, compared to an adjusted net income attributable to common stockholders of $13.3 million or $1.26 per diluted share in Q2 2023Adjusted EBITDA (a non-GAAP measure) was $12.3 million, vs. $20.7 million in Q2 2023Trailing twelve month adjusted EBITDA was $51.2 million (7.6% of net sales) down 23% from $66.9 million (9.2% of net sales) in the trailing twelve months ended June 2023 Management Commentary“The first half of 2024 closes with our delivering solid results anchored by our evergreen business of time-tested toy categories and play patterns,” said Stephen Berman, CEO of JAKKS Pacific, Inc. “A lack of new content releases created unfavorable topline comparisons with prior year, but our base business continued to perform and adapt in an ever-changing marketplace. “We are pleased with our progress to date and our positioning and preparation for the new product we’re shipping in the latter half of the year. Exciting new launches supporting Moana 2, releasing in theatres this November, and Sonic the Hedgehog™ 3, releasing in theaters this December will be the cornerstones of the broad retai...