Year-on-year sales for the costume division of Jakks Pacific dropped 12%, but were 22% higher than 2021.
Jakks Pacific has announced its Q4 ended 31 December, 2023, and full year 2023 results.
Net sales for the whole company in Q4 were $127.4 million, a decrease of 3% year-on-year. Gross margin was 26.5%, up 480 basis points compared to Q4 2022.
For the full year, the whole company net sales were down 11% year-on-year to $711.6 million, while gross margin was 31.4%, compared to 26.5% last year.
Gross profit for the full year was $223.4 million, up 6% compared to last year, and the highest dollar level since 2015.
Disguise sales fell 40% in Q4, with a drop of 54% in North America, and 20% internationally.
For the full year, Disguise sales were down 12% as customers continue to recalibrate to post-COVID levels. The performance was nonetheless 22% higher than 2021.
Stephen Berman, ceo of Jakks Pacific, commented: “For the third consecutive year we have met or exceeded our key financial full-year targets. The year began with the challenge of revenue comparisons with a 2022 hit-driven blockbuster product line, but we also saw opportunities for gross margin improvements with a normalised supply chain. Gross and operating margins improved year-over-year despite a $80+ million decline in net sales, generating over $66 million in operating cash flow for the year.
“The holiday toy season came late this year, but we were pleased with the results. Two of our top three US toys/consumer products customers achieved positive year-over-year retail sales results in Q4 despite challenging comparisons from the prior year. Our aggregate end-of-year inventory at retail at those three accounts is also down by a high single digit percentage compared to last year. Although customers are tentatively moving into the new year, we believe our core businesses remain on solid footing.”
