Jakks Pacific ( (JAKK) ) has released its Q2 earnings. Here is a breakdown of the information Jakks Pacific presented to its investors.
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JAKKS Pacific, Inc. is a renowned designer, manufacturer, and marketer of toys and consumer products, headquartered in Santa Monica, California, with a diverse portfolio that includes both proprietary and licensed brands.
In its latest earnings report, JAKKS Pacific revealed a challenging second quarter for 2025, marked by a significant decline in net sales, particularly in the United States, while international sales showed robust growth. The company faced a 20% decrease in net sales compared to the same period last year, with U.S. sales dropping by 31% and Rest of World sales increasing by 41%.
Key financial metrics highlighted a gross margin improvement to 32.8% from 32.0% in the previous year, despite a decline in gross profit to $39.0 million. The company reported an operating loss of $2.8 million, a stark contrast to the operating income of $7.6 million recorded in the second quarter of 2024. Adjusted net income attributable to common stockholders was $0.4 million, down from $7.3 million in the previous year.
For the first half of 2025, JAKKS Pacific’s net sales were slightly down by 3% compared to the previous year. The Toys/Consumer Products segment remained flat, while the Costumes segment saw a 13% decline. Despite these challenges, the company improved its gross profit by 14% and reduced its operating loss significantly.
Looking ahead, JAKKS Pacific’s management remains optimistic about navigating the current market uncertainties, leveraging its experience and strategic refinements, including the refinancing of its credit facility, to enhance financial resilience and capitalize on future opportunities.