JAKKS Pacific, Inc.’s JAKKadjusted loss of 88 cents per share was wider than the Zacks Consensus Estimate of a loss of 60 cents but narrower than the year-ago quarter’s loss of $1.01.
Net sales in the first quarter totaled $93 million, surpassing the consensus mark of $87.7 million by 6%. However, the top line fell 1.
Notably, the company’s shares have lost 53.1% in the past year, underperforming the industry’s rally of 15.6%.
The challenging industry scenario for traditional toymakers have affected JAKKS Pacific’s results.
Tighter retail inventory management and the recent Toys ‘R’ Us bankruptcy filing added to woes.
Operating Highlights
Gross margin in the first quarter was 24.7%, down 710 basis points (bps) from the prior-year quarter. Gross margin was negatively impacted by anticipated contractual royalty shortfalls related to the recently announced liquidation of Toys R Us and higher royalties resulting from a shift in product mix.
Adjusted EBITDA was negative $14.6 million compared with negative $10.6 million in the prior-year quarter.