Jakks Pacific reported financial results for the fourth quarter and fiscal year ended 31 December 2024 late last week. The year ended on a winning streak with good Q4 sales from the likes of the Sonic the Hedgehog, Moana and The Simpsons licensed ranges.
Sales in North America were down 3% in the quarter and 3% on a full-year basis compared to the previous year. Sales outside of North America were up 25% in the quarter, led by Europe. On a full-year basis, the business outside of North America was down 1%. The Company’s cash and cash equivalents (including restricted cash) totalled $70.1 million as of 31 December 2024, compared to $72.6 million as of 31 December 2023, despite utilising $20 million in cash in March as part of the transaction eliminating the company’s preferred stock.
Full year 2024 highlights
Net sales were $691.0 million compared to $711.6 million last year, a 3% decrease
Toys/Consumer Products net sales were $570.0 million, a year-over-year decrease of 2%
Costumes net sales were $121.0 million, a year-over-year decrease of 8%
Gross margin of 30.8% compared to 31.4% last year
Gross profit of $213.0 million, down 5% compared to $223.4 million last year
Operating income of $39.7 million compared to $59.1 million last year – a 33% decrease
The management commentary on the full year results was positive: “As we leave 2024, we are pleased with both the financial results we have achieved and the foundation we have established. We are a debt-free company with a strong portfolio of exceptional evergreen product categories and licenses led by a world-class team as we embark on the next chapter for Jakks Pacific. Our company marked the 30th anniversary of its founding last month.
“As we leave 2024, we are pleased with both the financial results we have achieved and the foundation we have established”
“Five years ago, we were trying to find our footing coming out of a painful restructuring exercise and processing the looming implications of what would become the COVID pandemic. The first quarter of this year represents the first time in fifteen years that we have started a year unencumbered by long-term debt or other obligations restricting our ability to share our successes directly with our common stock shareholders. As we consider our progress with initiatives like international expansion, partnering with the best global licensors and retailers and expanding and diversifying our product lines, we are excited for the future and what we see as a clear path forward for continued success.”
Q4 2024 highlights
Net sales were $130.7 million, a year-over-year increase of 3%
Toys/Consumer Products net sales were $118.2 million, a year-over-year decrease of 1%
Costumes net sales were $12.5 million, a year-over-year increase of 46%
Gross margin of 27.2%, up 70 basis points v Q4 2023
Gross profit of $35.6 million, up 5% compared to $33.7 million in Q4 2023
Operating loss of $14.7 million in Q4 2024, an improvement of $0.6 million vs. a loss of $15.3 million in Q4 2023
The commentary on the Q4 results was framed in terms of the full year: “Our fourth quarter results were roughly in line with our expectations. The business is measured in the context of full-year results with significant seasonality drivers of Halloween and Christmas. We always encourage customers to embrace our FOB selling model to leverage their larger and more efficient logistic operations.”
