‘Despite the shortfall from our original guidance, we were able to make progress on several of our strategic goals, including growing some of our core segments,’ says Jakks’ Stephen Berman.
Toy firm Jakks Pacific has detailed its financial results for the fourth quarter of 2016, which ended December 31st, 2016, where net sales totalled totaled $167.0 million, compared to $163.4 million in 2015.
Gross margin for the fourth quarter also spiked from 30.3 per cent last year to 31.2 per cent.
Operating margin was negative 1.4 per cent, which was an improvement for the toy company from negative 4.2 per cent in 2015.
“As we indicated in December, several of our key licensed products, including some tied to motion pictures, experienced surprising sales weakness in December, resulting in sales that were only modestly higher than a year ago,” said Stephen Berman, chairman and CEO of Jakks Pacific.
“Despite the shortfall from our original guidance, we were able to make progress on several of our strategic goals, including growing some of our core segments, broadening our owned IP both internally and with newly acquired property, expanding our geographic footprint, and building up our online sales channel.”
In addition, net loss attributable to Jakks for the fourth quarter was $7.6 million, or $0.47 per diluted share, compared to net loss attributable to the firm of $9.3 million, or $0.50 per diluted share, during 2015.
Meanwhile. adjusted EBITDA increased to $4.0 million from negative $2.1 million the year before.
“In 2017, we will continue to focus on efforts to transform Jakks Pacific from a multinational toy maker to a global provider of consumer products for kids. We expect our core business to benefit from the launch of new entertainment- licensed product lines 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.
“In terms of our owned IP, we expect another solid year for Gift ‘Ems and anticipate that the Chocolate Egg Surprise Maker, Real Workin’ Buddies Dusty and Mighty Runner brands will be well received by consumers. And, we will focus on supporting our owned IP with content created by Studio JP.”