Last Updated on December 26, 2019 by Danielle
Jakks Pacific announced an increase in net income with a decrease in sales for Q2 2017.
Jakks Pacific reported its second quarter 2017 financial results, which covered results from April 1, 2017 to June 30, 2017.
Jakks Pacific’s complete year net income hit nearly $120 million. Last year over the same period, it has sales of $141 million. That’s a deficit of almost $21 million comparing year-over-year results.
Jakks reported an overall net loss of $16.7 million for the 2nd quarter. A $2.3 million write down for an online retailer not in business anymore contributed a huge chunk to this loss.
Gross margins hit just over twenty-eight percent. This represents a decline compared to last year’s 32 percent. What contributed to the decline? It was primarily due to discounts due to closeout sales, fixed operating costs, and an alternative product mix.
Operating loss amounted to just over $14 million for the second quarter of 2017 for Jakks Pacific. This includes the $2.3 million write down. In 2016, Jakks reported an operating loss of just $1.1 million for the same period. This is the second quarter of losses for Jakks, which reported losses in the first quarter, resulting from a decline in net sales.
The question that remains: Can Jakks Pacific turn around its performance heading into the second half of the year and into the critical holiday season? The collectibles market is heating up so maybe Disney Tsum Tsum can help give it a much needed boost. They’ll need to focus on delivering margin improvement and focus in on their short and long term strategic goals. It’s going to have to heavily rely on its own intellectual property as well as licensed brands to drive performance in the opposite direction and drive operating gains. Jakks also recently announced a new initiative Jakks Care Package; we’ll see whether this strategic plan can positively impact its results.
Source: Toy News