JAKKS Pacific, Inc. (NASDAQ: JAKK) wrapped up the trading session on Wednesday with a notable 1.73% increase, reaching $17.06. Interestingly, JAKKS Pacific’s stock experienced a remarkable surge of 22.04% during the afterhours session, reaching $20.82. This surge in JAKK’s stock price came on the heels of the release of its financial results, which occurred after the conclusion of regular trading hours, and the successful attainment of a noteworthy agreement.
On the previous day, JAKKS Pacific (JAKK) unveiled its financial results for the third quarter, concluding on September 30, 2023. The report indicated net sales of $309.7 million, representing a 4% decrease compared to the previous year’s figure of $323.0 million. Notably, JAKKS Pacific maintained a net income of $47.8 million, equivalent to $4.53 per diluted share during the reporting period. By contrast, in the same quarter of the previous year, JAKK reported a net income of $30.3 million, amounting to $2.96 per diluted share.
Throughout the third quarter, JAKKS Pacific officially inaugurated its new office and self-operated warehouse in Italy, with plans to enhance its service in that market and Southern Europe more broadly, commencing in 2024. JAKKS Pacific has now shifted its strategic focus towards optimizing its presence across the European Union, capitalizing on the current strength of its product line. Concurrently, JAKK remains dedicated to proactively managing its inventory, bolstering internal discipline with regards to turnover, and maximizing its cash position.
In a separate press release issued on the same day, JAKKS Pacific also unveiled a long-term agreement with Authentic Brands Group (Authentic), a prominent global brand development, marketing, and entertainment platform. Under this agreement, JAKK will undertake the design, production, and distribution of a wide array of innovative products inspired by Authentic’s portfolio of iconic brands. These brands include Forever 21, Juicy Couture, Element, Roxy, Quiksilver, Prince, and Sports Illustrated. The rollout of these new products is scheduled to take place both in physical retail stores and online, accessible through key specialty and mass retailers around the world, starting in 2024.
This partnership between JAKKS and Authentic signifies the initiation of JAKKS’ strategy to create products catering to the Millennial and Gen Z generations under well-established brand names. It will propel JAKK into new product categories while expanding its presence in various retail channels. Furthermore, the introduction of spring and summer-focused product lines also serves to diversify JAKK’ business portfolio, offsetting its traditional dependence on the Halloween and holiday seasons.
