Last Updated on December 26, 2019 by Danielle
Jakks reveals Q4 2016 financial results.
Jakks Pacific reported its 2016 4th quarter financial results. Net sales amounted to $167 M. In 2015, the company netted $163.4 M in sales. Gross margin for Q4 increased from 30.3% in 2015 to 31.2% in 2016.
Although operating margin was -1.4%, it represented an improvement for the toy company since in 2015 operating margin was -4.2%.
Jakks Pacific’s chairman and CEO, Stephen Berman, stated that the reason for the shortfall from its original target was due to several of its key licensed products experienced surprising sales softness in the critical month of December. Thus, sales were only slightly higher than the prior year.
Berman noted that despite the shortfall the company was able to advance with regard to its strategic goals. These strategic goals were to grow some of its core toy segments, broaden its owned IP internally and with newly acquired property, expand its geographic footprint, and build its online sales channel.
The company’s vision going forward is to transform Jakks Pacific from a multi-national toy manufacturer into a global provider of kids’ consumer products. The company anticipates that its core toy business will benefit from new entertainment. You can expect the company to have licensed product lineup inspired by Marvel’s Guardians of the Galaxy, Disney’s Beauty and the Beast live action, LEGO Batman, DC Superhero Girls, Power Rangers, Minecraft, and Nintendo.
Furthermore, the CEO stated that investors can expect another great year from Gift ‘Ems. The company forecasts that its Chocolate Egg Surprise Maker, Real Workin’ Buddies Dusty, and Mighty Runner brands will perform well in the market.