Overview

* JAKKS Pacific ( JAKK ) 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/Mis Actual Consensu

s s

Estimate

Q3 Sales Miss $211.20 $223.93

mln mln (2

Analysts

)

Q3 Miss $20.56 $24.34

Adjusted mln mln (2

Net Analysts

Income )

Q3 Beat $36.50 $31.82

Adjusted mln mln (2

EBITDA Analysts

)

Q3 Gross 32%

Margin

Q3 Gross $67.64

Profit 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 ( JAKK ) is $28.50, about 37.4% above its October 29 closing price of $17.84

Press Release:

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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.)