Financial Data and Key Metrics Changes - Sales in Q2 2025 were down 20% compared to the prior year, with first half sales down 3% overall [6][11] - U.S. sales decreased by 10% year-over-year, while all other markets experienced a 33% increase [6][12] - Adjusted EBITDA for the quarter was $2.3 million, down from $12.3 million in the same quarter last year, but up from a loss of $4.9 million in the first half of last year [21] - Adjusted diluted EPS was $0.03 per share in the quarter, unfavorable compared to $0.65 per share last year [21] Business Line Data and Key Metrics Changes - Worldwide toy and consumer business was down 23% in the quarter, while the costume business was down 12% [11][12] - International growth was led by Europe, which grew by 65% in the first half of the year [12][25] - The company is focusing on maintaining a lean inventory, with a decrease of 8% year-over-year in the U.S. while international inventory is higher [45][62] Market Data and Key Metrics Changes - The company has seen limited increases in consumer prices in the U.S., but there are concerns about reduced unit sales due to these price hikes [10][11] - Major U.S. customers are delaying traditional second half planogram resets, impacting the productivity of new product introductions [26] Company Strategy and Development Direction - The company is taking a proactive approach to its manufacturing strategy, diversifying supply chains to mitigate risks associated with tariffs [7][8] - There is a focus on cash generation and prudent inventory management, especially in the U.S. market [45][72] - The company is exploring acquisition opportunities and remains cautiously optimistic about future growth despite current economic uncertainties [24][72] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the unpredictability of the U.S. market due to ongoing tariff changes and is adapting strategies accordingly [5][6] - There is a cautious outlook for the second half of the year, with a focus on profitability and cash generation rather than aggressive sales targets [50][51] - The company is optimistic about the upcoming holiday season, particularly with new product launches and strong consumer interest in established franchises [27][31] Other Important Information - The Board has approved a $0.25 per share dividend for the third quarter [21] - The company completed refinancing its credit facility, providing a predictable source of funds at attractive borrowing rates [20] Q&A Session Summary Question: Short-term levers to mitigate tariff impacts - The company is implementing a duplicate tool initiative to allow flexibility in manufacturing locations to reduce tariff impacts [38] Question: Adjustments to the supply chain - The company is focusing on manufacturing certain products outside of China, particularly in Vietnam, while maintaining quality and efficiency [40][41] Question: Comments on full year 2025 outlook - The company is taking a cautious approach, focusing on sell-through rates and profitability rather than aggressive inventory builds [49][50] Question: Potential for empty shelves during the holiday period - Management believes retailers will focus on proven products and lower price points, with a wait-and-see approach during the Halloween period [54]

Financial Performance - Q2 2025 - Net sales decreased by 19.9% year-over-year to $119.1 million, compared to $148.6 million in Q2 2024 [10, 60, 61] - Gross profit decreased by 18% to $39.0 million, compared to $47.6 million in Q2 2024 [10, 48] - Operating loss was $2.8 million, compared to an operating income of $7.6 million in Q2 2024 [10] - Adjusted EBITDA decreased to $2.3 million, compared to $12.3 million in Q2 2024 [10] - Adjusted net income attributable to common stockholders was $0.4 million (or $0.03 per share), compared to $7.3 million (or $0.65 per share) in Q2 2024 [10] - Gross margin increased to 32.8%, up from 32.0% in Q2 2024 [10, 20] Financial Performance - First Half 2025 - Net sales decreased by 2.7% year-over-year to $232.3 million, compared to $238.7 million in 1H 2024 [10, 60, 61] - Gross profit increased by 14% to $78.0 million, compared to $68.6 million in 1H 2024 [10, 48] - Operating loss decreased to $6.5 million, compared to an operating loss of $13.7 million in 1H 2024 [10] - Adjusted EBITDA increased to $2.7 million, up from a loss of $4.9 million in 2024 [10] - Gross margin increased to 33.6%, up from 28.8% in 1H 2024 [10, 32] Sales by Division - Q2 2025 - Toys/Consumer Products net sales decreased by 23.1% to $80.4 million, compared to $104.6 million in Q2 2024 [14, 60] - Costumes net sales decreased by 12.1% to $38.7 million, compared to $44.0 million in Q2 2024 [18, 60] Sales by Region - Q2 2025 - United States net sales decreased by 30.9% to $87.0 million, compared to $125.8 million in Q2 2024 [61] - Europe net sales increased by 42.8% to $14.7 million, compared to $10.3 million in Q2 2024 [61]

Core Viewpoint - JAKKS Pacific, Inc. reported a significant decline in net sales for the second quarter of 2025, primarily driven by a 31% drop in U.S. sales, while international sales showed growth, particularly in the Rest of World segment, which increased by 41% compared to the previous year [6][11]. Financial Performance - Net sales for Q2 2025 were $119.1 million, a decrease of 20% from $148.6 million in Q2 2024 [6][11]. - The Toys/Consumer Products segment saw a global sales decline of 23% to $80.4 million, while Costumes sales decreased by 12% to $38.7 million [6][11]. - For the first half of 2025, net sales totaled $232.3 million, down 3% from $238.7 million in the same period last year [7][11]. Geographic Sales Breakdown - U.S. sales for Q2 2025 were $87.0 million, down 31% from $125.8 million in Q2 2024 [6][11]. - Sales in the Rest of World segment reached $32.1 million, up 41% from $22.8 million in Q2 2024 [6][11]. - For the first half of 2025, U.S. sales were $175.9 million, down 10% from $196.3 million, while Rest of World sales increased by 33% to $56.4 million from $42.4 million [7][11]. Profitability Metrics - Gross profit for Q2 2025 was $39.0 million, down from $47.6 million in Q2 2024, with a gross margin of 32.8%, slightly improved from 32.0% in the prior year [11]. - The company reported an operating loss of $2.8 million for Q2 2025, compared to an operating income of $7.6 million in Q2 2024 [11]. - Adjusted net income attributable to common stockholders was $0.4 million (or $0.03 per share) in Q2 2025, down from $7.3 million (or $0.65 per share) in Q2 2024 [11]. Cash and Inventory Position - As of June 30, 2025, the company's cash and cash equivalents totaled $43.1 million, up from $17.9 million a year earlier, but down from $70.1 million at the end of 2024 [8]. - Inventory levels increased to $71.8 million from $51.3 million a year ago [8]. Management Commentary - The CEO expressed confidence in the company's ability to navigate challenges and emphasized the importance of leveraging experience and relationships to adapt to market conditions [5]. - The refinancing of the credit facility was highlighted as a move to enhance financial resilience and prepare for future opportunities [5].

POWAY, Calif., July 22, 2025 (GLOBE NEWSWIRE) -- Disguise, Inc., the leader in the global costume industry and a subsidiary of JAKKS Pacific, Inc. (NASDAQ: JAKK), is thrilled to unveil a new lineup of costumes inspired by NBCUniversal's highly anticipated 2025 film releases. The collection will feature characters from Wicked: For Good, the live-action retelling of How to Train Your Dragon, Gabby's Dollhouse: The Movie, and Jurassic World Rebirth. This new range expands Disguise's already extensive portfolio ...

Core Viewpoint - The consumer sector presents attractive growth stock opportunities, particularly as many stocks remain undervalued due to ongoing tariff concerns. Initial investments in these stocks can be beneficial for investors. Group 1: Amazon - Amazon's stock is currently attractively valued despite a rally from its lows, with a record Prime Day generating $24.1 billion in sales, more than double last year's Black Friday sales [3][4] - The company has made significant investments in logistics, automation, and AI, leading to improved operational efficiency and cost savings [4][5] - Amazon Web Services (AWS) continues to lead in cloud computing, with customers utilizing its services for AI model development, supported by custom chips for enhanced performance [5] Group 2: Alibaba - Alibaba's stock trades at a forward P/E of 11, with over 30% of its market cap in cash and investments, indicating it is undervalued [6][8] - The company's cloud business has seen AI-related revenue double for seven consecutive quarters, and partnerships with major companies like Apple could drive growth [6][7] - Alibaba is enhancing its e-commerce platforms and expanding international operations, with expectations of profitability in its international segment soon [7][8] Group 3: E.l.f. Beauty - E.l.f. Beauty's stock has faced a slowdown but is poised for transformation through its acquisition of Rhode, a fast-growing premium brand [9][10] - Rhode generated $212 million in sales with minimal marketing, indicating strong potential for growth as it enters retail partnerships [10][11] - The strategy to integrate premium brands is expected to yield better margins compared to mass-market products, presenting a long-term opportunity [12] Group 4: JAKKS Pacific - JAKKS Pacific has improved operations and profitability under new leadership, with shares up over 200% in five years despite a recent 30% decline due to tariff concerns [13][15] - The company reported a 26% sales increase in Q1, driven by popular licensed products, and is expected to maintain momentum with upcoming launches [14][15] - JAKKS is diversifying revenue through partnerships to create seasonal products, enhancing its market position [15] Group 5: Cava Group - Cava Group's stock is down nearly 50% from its highs, providing a favorable entry point for investors [16][18] - The company has achieved double-digit same-store sales growth for four consecutive quarters, driven by increased customer traffic [16][17] - Cava aims to expand its locations from under 400 to 1,000 by 2032, indicating significant growth potential in the fast-casual dining sector [18]

Company Overview - Jakks Pacific (JAKK) is anticipated to report a year-over-year decline in earnings, with a projected loss of $0.38 per share, reflecting a significant decrease of -158.5% compared to the previous year [3][12] - Revenue expectations for the quarter are set at $129.17 million, which indicates a decline of 13.1% from the same quarter last year [3] Earnings Estimates and Revisions - The consensus EPS estimate has been revised down by 13.35% over the last 30 days, indicating a reassessment by analysts regarding the company's earnings outlook [4] - The Most Accurate Estimate for Jakks is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +84.21%, suggesting a recent bullish sentiment among analysts [12] Earnings Surprise Potential - Historically, Jakks has beaten consensus EPS estimates in two out of the last four quarters, with a notable surprise of +95.83% in the last reported quarter [13][14] - Despite the positive Earnings ESP, the company currently holds a Zacks Rank of 5, which complicates the prediction of an earnings beat [12] Industry Context - Hasbro (HAS), a competitor in the same industry, is expected to report earnings of $0.76 per share, reflecting a year-over-year decline of -37.7%, with revenues projected at $872.98 million, down 12.3% from the previous year [18] - Hasbro's consensus EPS estimate has remained unchanged, but a lower Most Accurate Estimate has resulted in an Earnings ESP of -6.27%, indicating challenges in predicting an earnings beat [19]

Core Insights - JAKKS Pacific, Inc. will announce its second quarter and first half 2025 financial results on July 24, 2025, after the market closes [1] - A teleconference and webcast will be held to discuss the results, along with potential future plans and prospects [1] Financial Announcement Details - The teleconference is scheduled for 5:00 p.m. ET / 2:00 p.m. PT on July 24, 2025 [2] - A live webcast will be available on the company's "Investor Relations" page [2] - Participants are encouraged to join the call ten minutes early to avoid delays [2] Company Overview - JAKKS Pacific, Inc. is a leading designer, manufacturer, and marketer of toys and consumer products, headquartered in Santa Monica, California [3] - The company offers popular proprietary brands and a range of entertainment-inspired products featuring licensed properties [3] - JAKKS aims to positively impact children's lives through its products and charitable donations [3]

Core Viewpoint - JAKKS Pacific, Inc. has successfully refinanced its existing credit facility, securing a new $70 million cash flow-based revolving credit facility with BMO Bank NA, which will enhance liquidity and support the company's growth strategy [1][2][3]. Group 1: Credit Facility Details - The new credit facility replaces the previous $67.5 million revolving credit facility that was set to mature in June 2026 [2]. - The interest rate for the new facility is set at the Secured Overnight Financing Rate (SOFR) plus 150 basis points, with potential adjustments based on the company's net leverage ratio [2]. - This facility is secured by substantially all of the company's assets and can be utilized for working capital, capital expenditures, and other general corporate purposes [2]. Group 2: Management Commentary - The Chief Financial Officer of JAKKS Pacific highlighted that the new credit agreement offers improved covenants and increased liquidity, which is crucial given the seasonality of the business [3]. - The refinancing is expected to bolster the company's momentum in enhancing margins, cash flow, and EBITDA, ultimately driving shareholder value [3]. - The CFO expressed appreciation for the bank's support and confidence in the company's performance, emphasizing the flexibility the new facility provides to seize growth opportunities in a challenging economic environment [3]. Group 3: Company Overview - JAKKS Pacific, Inc. is a prominent designer, manufacturer, and marketer of toys and consumer products, headquartered in Santa Monica, California [4]. - The company offers a variety of proprietary brands and entertainment-inspired products, contributing positively to children's lives through its products and charitable efforts [4].

Core Insights - Investing in stocks based on valuation metrics, particularly the price-to-earnings (P/E) and price-to-sales (P/S) ratios, is a strategic approach to identify potential investment opportunities [1][3] - The P/S ratio is especially useful for evaluating unprofitable companies or those in early growth stages, as it reflects the value of revenue generated [3][4] Group 1: Price-to-Sales Ratio - A P/S ratio below 1 indicates that investors are paying less than a dollar for each dollar of revenue, making it a favorable investment [4] - The P/S ratio is preferred over the P/E ratio because sales figures are less susceptible to manipulation compared to earnings [5] - A company with high debt and a low P/S ratio may not be an ideal investment due to potential future financial obligations [5][6] Group 2: Screening Parameters - Companies should have a P/S ratio less than the median for their industry, a low P/E ratio, and a price above $5 to qualify as attractive investments [7][8] - Additional metrics such as Price/Book and Debt/Equity ratios should also be analyzed to ensure a comprehensive evaluation [6] Group 3: Company Highlights - JAKKS Pacific (JAKK) has a strong focus on innovation and partnerships, benefiting from acquisitions and a solid international presence, currently holding a Zacks Rank 2 and a Value Score of A [10][11] - Green Dot (GDOT) is positioned for growth with a strong balance sheet and partnerships with major companies like Walmart, also holding a Zacks Rank 2 and a Value Score of B [12][13] - Signet Jewelers (SIG) demonstrates strength in inventory management and strategic restructuring, leading to improved financial performance, currently holding a Value Score of A and a Zacks Rank 2 [14][15] - Gibraltar Industries (ROCK) focuses on operational improvements and has a solid growth outlook due to high demand in its Residential segment, currently holding a Value Score of B and a Zacks Rank 2 [16][17] - PCB Bancorp (PCB) is strategically expanding its services and optimizing its branch network, positioning itself for sustained growth, currently holding a Value Score of B and a Zacks Rank 2 [18][19]

Core Viewpoint - The article emphasizes the importance of value investing and highlights JAKKS Pacific (JAKK) as a strong value stock based on its financial metrics and Zacks Rank [2][4][6]. Company Summary - JAKKS Pacific (JAKK) currently holds a Zacks Rank of 2 (Buy) and has a Value grade of A, indicating strong potential for value investors [4]. - The stock is trading at a P/E ratio of 4.73, significantly lower than the industry average of 13.18, suggesting it may be undervalued [4]. - Over the past year, JAKK's Forward P/E has fluctuated between a high of 8.33 and a low of 4.12, with a median of 6.35 [4]. - JAKK has a P/CF ratio of 4.09, which is attractive compared to the industry's average P/CF of 12.22, further indicating potential undervaluation [5]. - The P/CF ratio for JAKK has ranged from a high of 8.68 to a low of 3.53 over the past year, with a median of 6.76 [5]. - Overall, JAKK is positioned as one of the market's strongest value stocks, supported by its earnings outlook and financial metrics [6].