JAKKS Pacific, Inc. reported a 13.0% annual decrease in first-half net sales to US$238.7 million, primarily due to fewer launches of new content-related products compared with the previous year.
Net sales in the second quarter of 2024 were US$148.6 million, a decrease of 11.0% from the same period last year. Net sales of toys and consumer products fell 11.3% to $104.6 million, while apparel sales fell 10.1% to $44 million.
In the first half of 2024, we delivered solid results based on our proven evergreen businesses in the toy category and gaming format. Revenue compared unfavorably to last year due to a lack of new content releases, but our underlying business continues to perform and adapt in a changing market.
— Stephen Berman, CEO, JAKKS Pacific
Gross profit fell 7.1% to US$47.6 million, but gross profit margin increased 130 basis points to 32.0%. Operating income was $7.6 million, down from $16.4 million in the second quarter of 2023. $0.58. Adjusted net income fell from $13.3 million, or $1.26 per diluted share, to $7.3 million, or $0.65 per diluted share. Adjusted EBITDA was $12.3 million, down from $20.7 million.
“We are pleased with our progress to date and our positioning and readiness to launch new products in the second half of the year,” Berman added. “Exciting new launch support moana 2in theaters this November, and Sonic the Hedgehog 3A theatrical release this December will be the cornerstone of our extensive retail support with top customers around the world. We’re also excitingly debuting a new range of products inspired by The Simpsonslaunching our Authentic Brands Group business as well as several other new IP and category expansions.
