Jakks Pacific has reported excellent progress for first quarter 2025 with sales up 26% over the previous year – so much so that the Board approved a 25 cent quarterly dividend.
- Net sales were $113.3 million, a year-on-year increase of 26%, driven in part by demand for product related to last quarter’s film releases
- Gross margin of 34.4% v 23.4% in Q1 2024, driven by improved margin of new product launches along with significantly reduced inventory obsolescence expense and retailer markdowns
- Gross profit was $39.0 million, up $17.9 million compared to $21.1 million in Q1 2024
- Operating loss was $3.8 million, compared to an operating loss of $21.3 million in Q1 2024
Stephen Berman, chairman and CEO of Jakks Pacific, said: “We are happy to share our results after a strong start to the year at Jakks. We’ve seen great consumer reaction year-to-date with solid consumer sales across major accounts and major markets. It has certainly been a moment of reflection to see our industry’s long-standing tradition of building substantial global partnerships come under scrutiny. Yet rather than viewing this as a setback, we see it as an opportunity to showcase the agility, innovation, and resilience that define not only our industry – but especially Jakks as a nimble, focused company.
We’re proud to have restored our fortress balance sheet – a critical milestone for our long-term success. We have maintained a strong liquidity position and a prudent capital structure that not only shields us in times of volatility but also positions us to move swiftly on growth opportunities. This disciplined approach gives us the confidence to invest in our future with a flexible financial foundation – even when the external environment is less predictable. In 2023, we eliminated all long-term debt and completed the repurchase of our preferred stock, giving us a clean and stable balance sheet. This not only enhances our ability to respond quickly to market shifts but also allows us to dedicate more energy and focus to driving our core business forward and pursuing new, high-potential opportunities.
We continue to create products that resonate with consumers globally, and we’re especially excited about what’s coming to market over the next twelve months. While the current environment in the United States has presented some unique challenges – particularly in the month of April – our foresight in building up strong infrastructure and capable teams in Europe and Latin America is already paying off. These regions are delivering real growth, and we see significant runway ahead.”
Stephen Berman concluded: “We remain actively engaged in monitoring the evolving situation in the US and are positioning ourselves to maximise performance in 2025, while keeping our medium- and long-term goals firmly in sight. We believe our seasoned team, global presence, and financial strength give us a clear advantage in navigating uncertainty – and ultimately emerging stronger.”
USD 1000 = GBP 746
