Group 1 - JAKKS Pacific is launching a new line of dolls called Roxy Dolls, inspired by fashion and action sports, exclusively at Target starting June 2025 [1][3] - The Roxy Dolls are designed for children ages 4 and up, featuring 7.5-inch articulated dolls that come with sports accessories like skateboards, snowboards, roller skates, or surfboards [1][2] - Each doll is priced at an MSRP of $19.99, targeting both action sports enthusiasts and fashion lovers [3] Group 2 - The collaboration with Authentic Brands Group has led to the meticulous design of Roxy Dolls, emphasizing style and posability for imaginative play [2] - Authentic Brands Group manages a portfolio generating over $29 billion in global annual retail sales, with a presence in 150 countries and more than 400,000 points of sale [5][6]

Core Insights - JAKKS Pacific is launching a new line of dolls called Roxy Dolls, inspired by fashion and action sports, set to debut exclusively at Target in June 2025 [1][2] - The dolls are designed for children aged 4 and up, featuring a height of 7.5 inches and include accessories related to various action sports [1][2] - Each doll is priced at an MSRP of $19.99, targeting both action sports enthusiasts and fashion lovers [3] Company Overview - JAKKS Pacific, Inc. is a prominent designer, manufacturer, and marketer of toys and consumer products, headquartered in Santa Monica, California [3] - The company has a diverse portfolio of proprietary brands and aims to positively impact children's lives through its products and charitable donations [3] Collaboration Details - The Roxy Dolls are developed in collaboration with Authentic Brands Group, focusing on merging fashion, creativity, and adventure [2] - Authentic Brands Group manages a vast portfolio generating over $29 billion in global annual retail sales, with a presence in 150 countries [5][6]

Sales Performance - Net sales for the Toys/Consumer Products segment decreased by $10.7 million, or 1.8%, to $570.0 million in 2024 from $580.7 million in 2023[156]. - Net sales for the Costumes segment decreased by $9.9 million, or 7.6%, to $121.0 million in 2024 from $130.9 million in 2023, primarily due to US customers recalibrating their order levels[157]. - Net sales for 2024 totaled $690.042 million, with the third quarter contributing the highest at $321.606 million, representing 46.5% of total sales[174]. - Net sales for 2024 were $691,042 thousand, a decrease of 2.1% from $711,557 thousand in 2023[217]. - Major customers accounted for 64.4% of total net sales in 2024, with Target® contributing $204,396 (29.6%) and Walmart® $166,943 (24.2%)[282]. - The United States generated $545,013 in net sales in 2024, representing a decline of 2.3% from $557,865 in 2023[281]. Profitability - The gross profit margin for the company decreased to 30.8% in 2024 from 31.4% in 2023[154]. - Gross profit for 2024 was $313.021 million, with a gross margin of 45.4% compared to 44.5% in 2023[174]. - Gross profit for 2024 was $213,021, down from $223,353 in 2023, reflecting a gross margin of approximately 30.8%[279]. - Net income attributable to JAKKS Pacific, Inc. was 4.9% of net sales in 2024, down from 5.4% in 2023[154]. - Net income attributable to JAKKS Pacific, Inc. for 2024 was $33,920 thousand, compared to $38,406 thousand in 2023, representing a decline of 11.5%[217]. - Comprehensive income attributable to JAKKS Pacific, Inc. for 2024 was $32,363 thousand, compared to $40,261 thousand in 2023, a decrease of 19.7%[220]. - The company recorded a net loss of $14.225 million in Q1 2024, representing a net loss margin of 15.8%[174]. - Net income for the year ended December 31, 2024, was $34.2 million, a decrease of 10.1% from $38.1 million in 2023 and a significant drop from $91.1 million in 2022[225]. Expenses - Selling, general and administrative expenses increased to $173.3 million in 2024, constituting 25.1% of net sales, up from $164.2 million, or 23.1% in 2023[160]. - Cost of sales for the Toys/Consumer Products segment increased to $389.5 million, or 68.3% of related net sales in 2024, compared to $388.3 million, or 66.9% in 2023[158]. - Cost of sales for the Costumes segment decreased to $88.5 million, or 73.1% of related net sales in 2024, down from $99.9 million, or 76.3% in 2023[159]. - Interest income decreased to $0.8 million in 2024 from $1.3 million in the prior year, primarily due to money market investments[163]. - Interest expense decreased to $1.1 million in 2024 from $6.5 million in 2023, primarily due to lower borrowing costs[164]. - The company reported a royalty expense of $106,804 thousand in 2024, down from $117,607 thousand in 2023, a reduction of 9.7%[217]. - Stock-based compensation expense increased to $9.5 million in 2024 from $8.0 million in 2023[225]. - Advertising expenses for the year ended December 31, 2024, were approximately $13.8 million, compared to $13.2 million in 2023[257]. Cash Flow and Working Capital - Operating activities generated net cash of $38.9 million in 2024, down from $66.4 million in 2023, attributed to lower net income and higher working capital usage[177]. - The company has a working capital of $119.3 million as of December 31, 2024, an increase from $106.1 million in 2023[176]. - Cash and cash equivalents decreased to $69,936 thousand in 2024 from $72,350 thousand in 2023, a decline of 3.9%[215]. - Cash, cash equivalents, and restricted cash at the end of 2024 were $70.1 million, a decrease from $72.6 million in 2023[225]. - Total cash provided by operating activities for 2024 was $38.9 million, down from $66.4 million in 2023[225]. Debt and Obligations - The company recorded a loss on debt extinguishment of $1.0 million in June 2023 related to the 2021 BSP Term Loan[161]. - The company fully paid off its 2021 BSP Term Loan on June 5, 2023, with a total prepayment of $30.2 million, including a loss on debt extinguishment of $1.0 million[184]. - Total contractual cash obligations as of December 31, 2024, are $151.9 million, including operating leases and minimum guaranteed license payments[180]. - The Company had a first-lien secured term loan of $99.0 million, with net proceeds of $96.3 million after fees, and it was fully paid off on June 5, 2023[294][302]. - As of December 31, 2024, the Company had no outstanding borrowings under the JPMorgan ABL Facility, with total excess borrowing availability of $61.2 million[311]. Taxation - Income tax expense for 2024 was $5.5 million, with an effective tax rate of 13.9%, compared to $6.8 million and 15.2% in 2023[165][166]. - The effective tax rate for 2024, excluding discrete tax benefits, was 17.4%, compared to 21.3% in 2023[165][166]. - The provision for income taxes for 2024 was an expense of $5.5 million, with an effective tax rate of 13.9%[317]. - The effective tax rate for 2023 was 15.2%, with a provision for income taxes of $6.8 million[319]. - The Company had net deferred tax assets of $70.4 million as of December 31, 2024, compared to $68.1 million in 2023[319]. Assets and Liabilities - Total assets increased to $444,869 thousand in 2024 from $398,951 thousand in 2023, marking a growth of 11.5%[215]. - Total liabilities rose slightly to $204,036 thousand in 2024 from $202,838 thousand in 2023, an increase of 0.6%[215]. - The Company’s accumulated deficit improved to $(39,692) thousand in 2024 from $(73,612) thousand in 2023, indicating a reduction in losses[215]. - The Company’s total liabilities decreased to $57.7 million in 2024 from $63.0 million in 2023[223]. - As of December 31, 2024, accrued expenses totaled $48.5 million, an increase from $45.1 million in 2023, with royalties accounting for $25.9 million[292]. Market Risks - The company is exposed to market risks related to changes in foreign currency exchange rates and interest rates, particularly due to its operations in China[198]. - The company has not engaged in derivative instruments or hedging activities to minimize its market risk[198]. - The Company’s primary currency translation exposures are related to investments in subsidiaries with functional currencies such as the Hong Kong Dollar and Euro[261]. Segment Information - The Company’s segments include Toys/Consumer Products and Costumes, with performance measured at the operating income level[273][276]. - The Toys/Consumer Products segment encompasses a diverse range of products including action figures, dolls, and electronic products[274]. - The Costumes segment, marketed under the Disguise brand, focuses on everyday and special occasion costumes[275].

Core Insights - Jakks Pacific's international revenue performance is critical for assessing its financial resilience and growth prospects [1][2][3] Revenue Performance - The total revenue for the quarter was $130.74 million, reflecting a year-over-year increase of 2.6% [4] - Latin America generated $4.29 million, constituting 3.28% of total revenue, which was a surprise of -39.46% compared to the expected $7.09 million [5] - Canada contributed $4.26 million, making up 3.26% of total revenue, with a surprise of -8.25% against the projected $4.64 million [6] - Australia and New Zealand accounted for $1.12 million, or 0.85% of total revenue, with a surprise of -33.57% from the expected $1.68 million [7] - The Middle East and Africa contributed $0.73 million, representing 0.56% of total revenue, with a positive surprise of +150.35% compared to the expected $0.29 million [8] - Asia generated $1.52 million, making up 1.16% of total revenue, with a slight positive surprise of +3.61% against the expected $1.47 million [9] - Europe was the largest contributor with $25.36 million, accounting for 19.40% of total revenue, and a significant surprise of +104.51% compared to the expected $12.4 million [10] Future Projections - Analysts project Jakks will achieve revenues of $93.74 million for the ongoing fiscal quarter, an increase of 4.1% year-over-year, with contributions from various regions [11][12] - For the full year, total revenue is expected to reach $696.29 million, reflecting a 0.8% increase from the previous year, with specific regional contributions outlined [13] Strategic Considerations - The reliance on international markets presents both opportunities and challenges for Jakks, necessitating close monitoring of revenue trends to inform future strategies [14] - The interconnected global economy and geopolitical factors are increasingly influencing earnings forecasts for companies with international operations [15]

Core Insights - Disguise, Inc. has expanded its agreement with The Pokémon Company International through a multi-year contract extension, granting distribution rights in North America, EMEA, ANZ, and select parts of LATAM [1][2][3] Company Overview - Disguise has been a leader in the dress-up and roleplay industry since 1987, producing millions of costumes and accessories each year for various licensed brands and its proprietary brands [7] - The company has successfully expanded its Pokémon costume line since its launch in 2019, including characters like Bulbasaur, Charizard, and others, reflecting substantial sales growth [2][3] Industry Position - The extended licensing agreement allows Disguise to leverage the popularity of Pokémon, driving innovation and enhancing consumer experiences with a broader range of Pokémon-themed costumes and accessories [2][3] - Disguise aims to cater to all Pokémon fans by offering a diverse selection of characters beyond the traditional focus on Pikachu [3]

JAKKS Pacific, Inc. Q4 2024 Results - The company reported an adjusted loss per share of 88 cents, which was wider than the Zacks Consensus Estimate of a loss of 21 cents, but improved from a loss of $1.21 per share in the prior-year quarter [3] - Quarterly revenues were $130.7 million, missing the consensus mark of $134 million, but increased by 3% year over year [3] Segment Performance - Net sales in the Toys/Consumer Products segment decreased by 0.5% year over year to $118.2 million, below the estimate of $125.3 million [4] - Costumes' net sales increased significantly by 46.4% year over year to $12.5 million, surpassing the prediction of $7.7 million [4] Operating Metrics - The gross margin for the quarter reached 27.7%, up 70 basis points from the prior-year level, although it was below the predicted 30% [5] - Adjusted EBITDA amounted to $59.3 million, down from $75.7 million a year ago [5] Balance Sheet - As of December 31, 2024, the company's cash and cash equivalents were $69.3 million, a decrease from $72.4 million as of December 31, 2023 [6] Overall Performance - The company's fourth-quarter performance met expectations, with strong seasonality noted particularly around Halloween and Christmas [2] - The company has encouraged customers to adopt its FOB selling model for more efficient logistics operations [2]

Financial Data and Key Metrics Changes - The toy and consumer products business experienced a decline of 1.8% for the full year, slightly better than expectations, with each division down in the 1% to 2% range [7][8] - Gross profit for Q4 was $35.6 million, a 5% increase from $33.7 million in the previous year, despite net sales only increasing by 3% [25] - Adjusted earnings per share for the full year was $3.79, down from $4.62 in the prior year, marking the second consecutive year with adjusted EPS over $3 [31] Business Line Data and Key Metrics Changes - The costume business declined by 7.5% for the full year, primarily due to softness in the U.S. market [8] - The Disguise business grew outside of North America for the fourth consecutive year, reaching an all-time high in 2024 [10] - The international business, including costumes, was down 1% for the full year, with Latin America showing growth of over 19%, reaching $38 million in sales [15] Market Data and Key Metrics Changes - North America sales were down 3% for both the quarter and the year, with declines in both toy and consumer products and costumes [15] - Retail inventories at top U.S. toy consumer accounts were down high single digits compared to the prior year, marking a second consecutive year of decline [12] Company Strategy and Development Direction - The company is focusing on enhancing synergies between toy and costume teams internationally to drive growth [9] - A quarterly dividend of $0.25 per share has been initiated, reflecting a strong financial position and a commitment to returning value to shareholders [18][19] - The company is prioritizing European growth and has expanded its distribution network in the EU to improve fulfillment times [13][56] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's position, highlighting a strong balance sheet with no long-term debt and a focus on profitable growth [17][20] - The company is aware of external risks but feels well-positioned compared to many within the industry [18] - Management anticipates continued momentum in several business lines as they enter 2025, emphasizing a long-term approach to brand development [36][39] Other Important Information - The company has implemented a multi-tiered development process to address different market segments effectively [57] - The focus on affordability remains crucial, especially during times of cost structure surges due to tariffs and other factors [22] Q&A Session Summary Question: Flexibility for Acquisitions with Dividend Initiation - Management confirmed that the company has ample cash flow and is comfortable with the dividend initiative while still having the capacity for opportunistic acquisitions [66] Question: Impact of Holiday Movies on Sales - Management explained that the release of movies typically generates excitement that can lead to long-term sales momentum, especially when streaming begins [70] Question: Inventory Management and Tariff Impact - Management highlighted their effective inventory management strategy, maintaining a high percentage of sales on an FOB basis, and emphasized that inventory is viewed as cash [75][76] Question: Retail Space for Toys - Management noted an increase in retail space for toys, attributing it to the evergreen nature of their products and successful placement strategies [86] Question: E-commerce Sales Events - Management acknowledged that increased e-commerce sales events provide opportunities for enhanced sales and promotional initiatives [94] Question: Currency Exposure - Management indicated that the company has limited foreign exchange exposure due to its FOB business being U.S. dollar denominated [97] Question: Box Office Performance and Strategy - Management stated that box office performance enhances sales but is not the sole driver of strategy, as they have diversified initiatives that do not rely on blockbuster success [101]

Financial Performance - Q4 2024 - Net sales for Q4 2024 were $130.7 million, a 3% increase year-over-year[8] - Gross profit for Q4 2024 increased to $35.6 million, up from $33.7 million in Q4 2023[8] - The company reported an operating loss of $14.7 million in Q4 2024, compared to a $15.3 million loss in Q4 2023[8] - Adjusted EBITDA for Q4 2024 was a loss of ($10.2) million, versus ($10.9) million in Q4 2023[8] Financial Performance - Full Year 2024 - Full year net sales were $691.0 million, a 3% decrease compared to $711.6 million in FY 2023[9] - Full year gross profit decreased by 5% to $213.0 million, from $223.4 million in FY 2023[9] - Operating income for the full year was $39.7 million, down from $51.9 million in FY 2023[9] - Adjusted EBITDA for the full year was $59.3 million, compared to $75.7 million in FY 2023[9] Sales by Division and Region - Toys/Consumer Products net sales for the full year decreased by 1.8% to $570.0 million[76] - Costumes net sales for the full year decreased by 7.5% to $121.0 million[76] - Net sales in the United States for the full year decreased by 2.3% to $545.0 million[78]

分组1 - Jakks Pacific reported a quarterly loss of $0.67 per share, significantly worse than the Zacks Consensus Estimate of a loss of $0.05, but an improvement from a loss of $1.04 per share a year ago, indicating a surprise of -1,240% [1] - The company posted revenues of $130.74 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 2.62%, but showing a slight increase from $127.4 million year-over-year [2] - Over the last four quarters, Jakks has surpassed consensus EPS estimates only once and has topped consensus revenue estimates just once [2] 分组2 - The stock has gained approximately 24.1% since the beginning of the year, outperforming the S&P 500's gain of 4.5% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.68 on revenues of $93.74 million, and for the current fiscal year, it is $4.21 on revenues of $696.29 million [7] - The Toys - Games - Hobbies industry, to which Jakks belongs, is currently ranked in the top 16% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Performance - Net sales for Q4 2024 were $130.7 million, reflecting a year-over-year increase of 3%[6] - Full-year net sales decreased by 3% to $691.0 million, down from $711.6 million in 2023[6] - Net sales for Q4 2024 were $130,741,000, a 3% increase from $127,396,000 in Q4 2023, while total net sales for the year decreased by 3% to $691,042,000 from $711,557,000[23] - Net sales for the Toys/Consumer Products division decreased by 1.8% year-over-year, totaling $570,018,000[29] - Total net sales for the year decreased by 2.9% to $691,042,000 from $711,557,000[32] Profitability - Gross margin improved to 27.2%, up 70 basis points compared to Q4 2023[6] - Operating income for the full year was $39.7 million, a decrease of 33% from $59.1 million in the previous year[6] - Gross profit for Q4 2024 was $35,553,000, representing a 5% increase from $33,733,000 in Q4 2023, but total gross profit for the year decreased by 5% to $213,021,000 from $223,353,000[23] - The company reported a net loss attributable to common stockholders of $9.1 million in Q4 2024, compared to a loss of $11.3 million in Q4 2023[6] - The company reported a net loss of $9,113,000 in Q4 2024, a 16% improvement from a net loss of $10,872,000 in Q4 2023, with a total net income for the year of $34,200,000, down 10% from $38,113,000[23] - Adjusted net income attributable to common stockholders for the twelve months ended December 31, 2024, was $42,560,000, down from $48,906,000[27] Cash Flow and Dividends - Cash flows provided by operating activities were $38.9 million, down from $66.4 million in 2023[6] - The company ended the year with cash and cash equivalents of $70.1 million, down from $72.6 million in 2023[9] - The company initiated a quarterly cash dividend of $0.25 per share, equating to $1.00 per share annually[4] Expenses - Direct selling expenses increased by 25% in Q4 2024 to $18,201,000 compared to $14,582,000 in Q4 2023, while total selling expenses for the year rose by 8% to $40,105,000 from $36,987,000[23] - The cost of goods sold as a percentage of net sales was 55.3% in Q4 2024, compared to 54.0% in Q4 2023, indicating a 130 basis points increase[24] - The company reported a decrease in royalty expenses by 8% in Q4 2024 to $20,623,000 from $22,533,000 in Q4 2023, with annual royalty expenses down 9% to $106,804,000 from $117,607,000[23] International Sales - International sales increased by 25% in Q4 2024, while North American sales were down 3%[8] - Sales in Europe increased by 41.0% in Q4 2024, totaling $25,359,000 compared to $17,988,000 in Q4 2023[31] - The company experienced a 19.2% increase in Latin America sales year-to-date, totaling $38,159,000[31] Earnings and Adjusted Metrics - Earnings per share (EPS) for Q4 2024 were $(0.83), an improvement from $(1.12) in Q4 2023, while the annual EPS was $3.27, down from $3.70[23] - Adjusted earnings per share (basic) decreased to $3.95 from $4.91, a decline of $0.97[27] - Adjusted EBITDA for Q4 2024 was $(10,154,000), a slight improvement from $(10,929,000) in Q4 2023, with annual adjusted EBITDA of $59,265,000, down from $75,719,000[26] - TTM Adjusted EBITDA fell to $59,265,000, down $16,454,000 or 22% from $75,719,000[27] - The company reported a decrease in TTM Adjusted EBITDA/TTM Net sales percentage to 8.6%, down 200 basis points from 10.6%[27] Interest and Tax - The company experienced a decrease in interest income by 59% in Q4 2024 to $308,000 from $757,000 in Q4 2023, while interest expense decreased by 78% to $(157,000) from $(710,000)[23] - The provision for income taxes showed a 3% decrease in Q4 2024, amounting to $(5,446,000) compared to $(5,643,000) in Q4 2023[23]