Jakks Pacific Inc (JAKK) Reports Q3 2023 Financial Results: Gross Margin Reaches Highest Level ...
Jakks Pacific Inc (NASDAQ:JAKK) reported Q3 2023 financial results with a year-to-date gross margin of 32%, the highest since 2011.
Net sales for Q3 2023 were $309.7 million, down 4% compared to $323.0 million last year.
The company's cash and cash equivalents totaled $96.4 million as of September 30, 2023, compared to $76.6 million as of September 30, 2022.
Total debt was zero, compared to $67.7 million as of September 30, 2022.
On November 3, 2023, Jakks Pacific Inc (NASDAQ:JAKK) released its financial results for the third quarter ended September 30, 2023. Despite a slowdown in retail activity, the company continued to perform well throughout the third quarter. The company's Action Play & Collectibles business was up 43% in the quarter, and with $184.1 million shipped through Q3, is up 37% compared to last year.
Financial Performance
The Toys/Consumer Products segment sales were down 9% globally, and sales of Disguise costumes were up 19% compared to last year. Year-to-date Toys/Consumer Products sales were down 13% over the comparable 2022 period. Year-to-date adjusted net income attributable to common stockholders was $59.4 million ($5.66 per diluted share), compared to $57.5 million ($5.68 per diluted share) in the first nine months of 2022.
Balance Sheet Highlights
The company's cash and cash equivalents (including restricted cash) totaled $96.4 million as of September 30, 2023 compared to $76.6 million as of September 30, 2022, and $85.5 million as of December 31, 2022. Total debt was zero, compared to $67.7 million as of September 30, 2022, and $67.2 million as of December 31, 2022. Inventory was $68.8 million, compared to $109.2 million as of September 30, 2022 and $80.6 million in total inventory as of December 31, 2022.
Management Commentary
Although we have seen activity at retail slowing, our business continued to perform well throughout the third quarter. Retail sell-through at our Top 3 accounts in the US were down low single digits on a year-to-date basis, while our inventory at those accounts is down over 20% year-over-year said Stephen Berman, CEO of JAKKS Pacific.
Looking Forward
The company is looking forward to the holiday season and has recently finished great customer meetings previewing its Fall 2024 product line. They are exceeding their own internal expectations for the full year and are carefully navigating towards the end of the year given the persistent uncertainty about consumer behavior.
Explore the complete 8-K earnings release (here) from Jakks Pacific Inc for further details.
This article first appeared on GuruFocus.
