Toy maker JAKKS Pacific misses Q3 sales estimates

JAKKS Pacific

30/10/2025 20:50

Overview

JAKKS Pacific Q3 net sales fell 34% yr/yr, missing analysts' expectations

Adjusted EBITDA for Q3 beats estimates, despite a challenging market environment

Gross margin drops by 180 basis points due to US tariffs and higher royalty expenses

Outlook

Company highlights challenges from tariffs and retail demand volatility

Company focuses on product innovation and operational efficiency for future growth

Company aims to adapt to future trade and policy shifts with diversified sourcing

Result Drivers

TARIFF IMPACT - US tariffs and higher royalty expenses contributed to gross margin falling to 32% from 33.8%

REDUCED IMPORT SALES - Decline in direct-import sales due to anticipated lower consumer demand and tariff-driven price increases

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Miss
$211.20 mln
$223.93 mln (2 Analysts)
Q3 Adjusted Net Income
Miss
$20.56 mln
$24.34 mln (2 Analysts)
Q3 Adjusted EBITDA
Beat
$36.50 mln
$31.82 mln (2 Analysts)
Q3 Gross Margin
32%
Q3 Gross Profit
$67.64 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the toys & children's products peer group is "buy"

Wall Street's median 12-month price target for JAKKS Pacific Inc is $28.50, about 37.4% above its October 29 closing price of $17.84

Press Release: ID:nGNX8hJFbB

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)