Q3 2024 JAKKS Pacific Inc Earnings Call Transcript
Key Points
- Jakks Pacific Inc (JAKK) reported year-over-year sales increases across all three toy consumer product divisions in Q3 2024.
- The company remains debt-free, providing financial strength and flexibility for future initiatives.
- International markets, particularly Latin America, showed significant growth with a 48% increase in Q3 sales compared to the prior year.
- Jakks Pacific Inc (JAKK) has successfully expanded its retail presence with exclusive products and additional shelf space globally.
- The company maintains a strong focus on accessible price points, with over half of its sales volume driven by products priced at $30 or less.
- The action play and collectible business was down 9% year-to-date, partly due to timing issues with movie releases.
- The European and Asia Pacific regions experienced sales declines of 3.8% and 3.4% respectively in Q3.
- Retailers are actively destocking, leading to soft sell-through across the industry, although Jakks Pacific Inc (JAKK) is performing better than most.
- Creditworthiness of some retailers remains a concern, with a 1% year-over-year sales decline attributed to deteriorating credit situations.
- The company faces challenges in maintaining or expanding margins due to consistent fixed cost increases without scale leverage.
Good day. And thank you for standing by. Welcome to the Q3 2024 Jack Pacific earnings conference call at this time, all participants are in a listen-only mode.
After the speaker's presentation, there will be a question-and-answer session to ask a question during the session. You will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised to withdraw your question. Please press star 11 again.
Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your speaker today, Steven Berman, Chairman and CEO.
Good afternoon and thank you for joining us today.
It's an exciting time of the year here as Q3 is always the highest sales quarter and by extension generates a lot of activity.
The end of the year is in sight with less than 60 shifty days remaining. And our goals for the full year are starting to feel like they're more within reach.
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