Eric Beder's questions to JAKKS Pacific Inc (JAKK) leadership • Q1 2025
Question
Eric Beder asked about the potential impact of sustained tariffs on the holiday product mix and how the current environment accelerates JAKKS' international growth strategy and infrastructure readiness.
Answer
Stephen Berman (executive) explained that if high tariffs persist, consumers would face higher prices for lower-priced goods. He noted that over 50% of JAKKS' products retail under $29.99, which provides a buffer. To mitigate risks, the company is holding some inventory pending tariff resolution and leveraging manufacturing partners in Vietnam, Cambodia, and Indonesia. Berman confirmed they are aggressively accelerating international expansion, particularly in Latin America and EMEA, to offset potential U.S. slowdowns. He affirmed that the company's international infrastructure is well-established and prepared for this strategic shift.