Core Insights - Comcast exceeded Wall Street expectations for its quarterly results, driven by the increasing popularity of its theme parks and strong box office performance from the latest "Jurassic World" movie [1] Company Performance - The growth in theme park attendance contributed significantly to Comcast's financial performance, indicating a positive trend in consumer engagement with its entertainment offerings [1] - The success of the "Jurassic World" movie at the box office further bolstered Comcast's revenue, showcasing the effectiveness of its content strategy [1]

Box Office Performance & Trends - The summer box office is projected to reach nearly $4 billion domestically by Labor Day [10] - As of Wednesday, box office revenue is approximately $31 billion to $32 billion [11] - *Lilo & Stitch* has grossed over $1 billion worldwide [13] - *F One* has grossed $550 million [13] - *Superman* has grossed $560 million [13] - *Jurassic World Rebirth* has grossed $770 million [13] - Premium formats are seeing a boost in box office revenue, especially post-pandemic [9] Movie Release & Target Audience - *Freaky Friday* (PG) and *Weapons* (PG-13) are counterprogramming releases [3] - *Freaky Friday* targets a vast audience, including families and those with nostalgia for previous films [1][2] - *Weapons* is a horror movie directed by Zack Krieger, known for *Barbarian* [3][8] Movie Industry Observations - August is considered a strong moviegoing month [5] - Comedy is potentially making a comeback in theaters [10] - There's a curiosity factor surrounding Lindsay Lohan's comeback in *Freaky Friday* [4]

Financial Data and Key Metrics Changes - Net sales grew 2% as reported and 4% in constant currency to $827 million [6][25] - Adjusted gross margin increased by 130 basis points to 49.6% [6][25] - Adjusted EBITDA grew 7% to $57 million [6][25] - Cash balance at quarter end was $1.24 billion, an increase of $113 million year-over-year [32] - Total debt remained approximately $2.34 billion [33] Business Line Data and Key Metrics Changes - Dolls gross billings increased 2%, driven by Disney Princess and Wicked, while Barbie and American Girl were comparable to the prior year [26][15] - Vehicles increased 6%, with Hot Wheels growing 7% [26][15] - Infant toddler and preschool overall declined 5%, primarily due to declines in baby gear and Power Wheels [26] - Challenger categories overall increased 14%, driven by growth in Action Figures and Games [28] Market Data and Key Metrics Changes - Gross billings increased 4% in North America, including double-digit growth in Canada [29] - EMEA increased 8% with growth across almost every market [29] - Asia Pacific increased 12%, driven by growth in Australia, India, and China [29] - Latin America declined 7%, reflecting the impact of retailers reducing inventory levels [29] Company Strategy and Development Direction - The company is diversifying its supply chain to reduce reliance on China, with plans to relocate production of 500 toy SKUs from China to other locations in 2025 [9][10] - Aiming to reduce U.S. imports from China to less than 15% of global production by 2026 and less than 10% by 2027 [13][12] - The company is committed to maintaining a strong balance sheet and executing a $600 million share repurchase program for 2025 [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in mitigating actions to offset potential tariff impacts, emphasizing a strong balance sheet and operational excellence [22][23] - The company is pausing full-year 2025 guidance due to uncertainty in consumer spending and the evolving tariff situation [21][22] - Management noted that the toy industry has historically proven resilient during uncertain times [22] Other Important Information - The company reported a strong first quarter with top-line growth and gross margin expansion [6][23] - The entertainment strategy is progressing, with several movies in production and partnerships with major entertainment companies [18][19] Q&A Session Summary Question: Can you outline the roadmap to offset the impact of incremental tariffs? - Management indicated that Q1 was not impacted by tariffs and expects Q2 to be unaffected as well, with potential impacts starting in Q3 [42] - Current exposure to tariffs is estimated at $270 million, before considering mitigating actions [43][44] Question: What flexibility exists in the supply chain to transition out of China? - The company has established a flexible, modular supply chain over seven years, sourcing from multiple countries [50][52] Question: How confident is the company in passing along pricing to retailers? - Management emphasized long-standing relationships with retailers and a strategic approach to pricing, ensuring affordability [55][59] Question: What is the current state of inventory levels post-Easter? - The company reported that both owned and retail inventories are at appropriate levels, with some increases due to the later Easter holiday [78] Question: Have there been changes in retailer buying behavior? - No significant changes in buying behavior were noted, but some volatility is expected in gross billings due to direct import assessments [82][84]