JAKKS Pacific, Inc. reported a 13.0% year-over-year decline in first-half net sales to $238.7 million, primarily attributed to fewer new content-related product launches compared to the previous year.
For the second quarter of 2024, net sales were $148.6 million, an 11.0% decrease from the same period last year. Toys and Consumer Products net sales fell by 11.3% to $104.6 million, while costume sales decreased by 10.1% to $44 million.
The first half of 2024 closes with our delivering solid results anchored by our evergreen business of time-tested toy categories and play patterns. A lack of new content releases created unfavorable topline comparisons with prior year, but our base business continued to perform and adapt in an ever-changing marketplace."
Gross profit dropped 7.1% to $47.6 million, but the gross margin improved by 130 basis points to 32.0%. Operating income was $7.6 million, down from $16.4 million in Q2 2023. Net income attributable to common stockholders was $5.3 million, or $0.47 per diluted share, compared to $6.1 million, or $0.58 per share, last year. Adjusted net income fell to $7.3 million, or $0.65 per diluted share, from $13.3 million, or $1.26 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 preparation for the new product we’re shipping in the latter half of the year,” Berman adds. “Exciting new launches supporting Moana 2, releasing in theatres this November, and Sonic the Hedgehog 3, releasing in theaters this December will be the cornerstones of the broad retail support we have secured with our top customers globally. We are also in the middle of the exciting initial launch of our new line of products inspired by The Simpsons, the launch of our Authentic Brands Group business as well as several other new IP and category extensions.”
