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JAKK Nasdaq· JAKKS Pacific Inc.
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JAKK Nasdaq· JAKKS Pacific Inc.
Earnings report Q3 2023

JAKKS Pacific Reports Decline in Revenue for the Latest Quarter

Segments of revenue

JAKKS Pacific, Inc. reported net sales of $309.7 million for the latest quarter, representing a decrease of 4% compared to the same period last year. The company's net sales for the nine months ended September 30, 2023, were $584.2 million, reflecting a decline of 12% compared to the prior year.

Strengths

Despite the decline in revenue, JAKKS Pacific demonstrated strength in managing its cost of sales. The company's gross profit for the quarter was $107 million, a significant increase of 16% compared to the same period last year. This improvement can be attributed to effective cost management and potentially favorable pricing strategies. Additionally, JAKKS Pacific's net income attributable to common stockholders for the quarter was $47.8 million, showing a substantial increase of 57% compared to the previous year. This growth in profitability indicates the company's ability to generate higher earnings despite the challenging revenue environment.

Challenges

JAKKS Pacific faced challenges in its revenue performance during the latest quarter. The company experienced a decline in net sales, which can be attributed to various factors such as changes in consumer preferences, increased competition, and supply chain disruptions. The decrease in revenue highlights the need for JAKKS Pacific to adapt its product offerings and marketing strategies to better align with evolving market trends.

Noteworthy

It is worth noting that JAKKS Pacific reported an increase in its gross profit margin for the latest quarter. The company's gross profit margin improved to 34.5% compared to 28.5% in the same period last year. This improvement indicates the company's ability to effectively manage its cost of sales and optimize its profitability.

Summary

JAKKS Pacific, Inc. faced challenges in its revenue performance for the latest quarter, reporting a decline in net sales. However, the company demonstrated strength in managing its cost of sales, leading to an increase in gross profit and net income. JAKKS Pacific's ability to improve its gross profit margin highlights its effective cost management strategies. Moving forward, the company should focus on addressing the challenges in its revenue performance by adapting to changing consumer preferences and enhancing its product offerings.

Source documents

Form 10-Q  filed on Nov 14, 2023
117 pages scanned

Reference data

Company financials Q3 revenue 127M
Analyst estimates Q3 EPS missed by -130.32%
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