Gerrick Johnson

Gerrick Johnson of Seaport Research Partners asked about JAKKS Pacific's Point-of-Sale (POS) performance and trends during the fourth quarter, as well as the company's retail inventory levels compared to the broader industry, seeking to identify any potential clutter. He also inquired about the level of promotional activity and sales allowances in Q4.

Answer

CFO John Kimble stated that POS performance was not 'thrilled with,' noting that while hot new launch items sold well, higher retailer prices generally slowed POS for other segments. Chairman and CEO Stephen Berman reported that JAKKS' retail inventory at major U.S. retailers was 'very tight,' down 21% and 4% year-over-year, reflecting a focus on profitability over chasing top-line sales. He also mentioned that JAKKS' Q4 promotional activity was 'quite normal or a little bit less than normal,' contrasting with heavier discounting seen from competitors due to a cautious year impacted by tariffs.

Gerrick Johnson inquired about JAKKS Pacific's Point of Sale (POS) performance in the fourth quarter, how it trended, and the company's retail inventory levels, as well as the broader industry inventory situation. He also asked about the promotional activity and sales allowances in Q4.

Answer

CFO John Kimble indicated that POS performance was not thrilling overall, but new, hot launch items sold through well. He attributed slower POS in other segments to higher retailer prices. Chairman and CEO Stephen Berman stated that JAKKS Pacific's inventory at two major U.S. retailers was down 21% and 4% year-over-year, respectively, reflecting a focus on profitability over chasing top-line sales. He also noted that JAKKS' promotional activity and sales allowances in Q4 were normal or slightly less than normal, contrasting with heavier discounting by competitors. Stephen Berman also clarified that the company's Q4 margin was 380 basis points higher than the prior year.

Gerrick Johnson asked for insights into Mattel's expectations for the Masters of the Universe and Matchbox movies, seeking metrics or assumptions to aid in modeling their impact. He also confirmed the first-quarter revenue guidance.

Answer

Mattel's Chairman and CEO, Ynon Kreiz, described Masters of the Universe as a large, global theatrical release expected to be 'very toyetic,' expressing high confidence in its potential to appeal to both existing fans and new audiences. He noted Matchbox would be released on Apple TV with a strong cast and accompanying toy line. Mattel's CFO, Paul Ruh, confirmed the expectation of a low single-digit decline in Q1 revenue due to shifts from direct import to domestic orders and new product line timing.

Gerrick Johnson asked for insights into how Mattel is factoring the Masters of the Universe and Matchbox movies into its 2026 guidance, including any specific metrics or assumptions.

Answer

Ynon Kreiz (Chairman and CEO, Mattel) described Masters of the Universe as a large global theatrical release, highly 'toyetic,' with positive early testing, expected to appeal to both long-time fans and new audiences. Matchbox will be released on Apple TV, featuring a strong cast and director, accompanied by a dedicated toy line. He highlighted the breadth of Mattel's IP offering, from Barbie to Eternia. Gerrick Johnson also sought confirmation on the first-quarter revenue guidance, specifically if it projected a low single-digit decline. Paul Ruh (CFO, Mattel) confirmed the expectation for a low single-digit decline in Q1, attributing it to continued shifts from direct import to domestic orders in the U.S. and the timing of new product line launches.

Gerrick Johnson asked about the proportion of Magic: The Gathering's tabletop sales that go to players versus collectors. He also inquired why Hasbro's out-licensing revenue in toys was down, given it was a major strategic plank, and if the program had stalled.

Answer

CEO Chris Cocks stated that Magic is overwhelmingly player-based or player-collector, estimating 80%-90% of sales, which provides a stable community base. CFO Gina Goetter clarified that the decline in licensing revenue was not due to a stalled program but rather a tough comparable from My Little Pony trading cards (Kayou) in China during 2024 and early 2025. Chris Cocks added that point-of-sale for out-licensed toys was up mid-teens%, and location-based entertainment also saw growth.

Gerrick Johnson inquired about the decline in toys licensing revenue and whether Hasbro's out-licensing program has stalled.

Answer

CFO Gina Goetter clarified that the out-licensing program has not stalled, attributing the decline to a tough comparable from My Little Pony trading cards in 2024 and early 2025, particularly in China. CEO Chris Cocks added that point-of-sale for out-licensed toys was up mid-teens, and location-based entertainment grew.

Gerrick Johnson expressed skepticism about revenue synergies, questioning the feasibility and timeline of expanding distribution given existing dealer brand saturation and the challenge of cross-selling different boat types. He also asked for an update on the uptake and dealer base build-out for the Balise brand, and whether the Marine Products acquisition would deprioritize it. Lastly, he inquired about the risk of the acquisition not closing, particularly given the Rollins family's significant two-thirds ownership of Marine Products shares.

Answer

Brad Nelson, Chief Executive Officer, acknowledged the challenges but highlighted opportunities in medium to large freshwater bodies for sport fishing vessels and under-tapped freshwater/saltwater markets in coastal areas for MasterCraft's categories. He emphasized that the expanded portfolio and ongoing innovation would create market-by-market opportunities for brand aggregation among the 500+ dealers. Brad Nelson stated that Balise continues its ramp, showing strong consumer interest and dealer feedback for its ultra-premium product. Scott Kent, Chief Financial Officer, added that each business unit operates independently, and Balise remains an important part of the pontoon segment. Regarding the closing risk, Brad Nelson stated the company is excited about the deal, viewing it as a compelling business case for shareholders. Scott Kent expressed confidence in closing, believing MasterCraft can be a good steward of Marine Products' brands.

Gerrick Johnson expressed skepticism about revenue synergies, questioning the time it would take to expand distribution, the need to displace other brands, and the difficulty of integrating complementary dealerships across different water types. He also asked about the progress of Balise's uptake and dealer base build-out, and if the Marine Products deal would deprioritize it. Finally, he inquired about the risk of the deal not closing given the Rollins family's significant share ownership.

Answer

Brad Nelson, CEO, acknowledged the challenges but highlighted opportunities for center consoles and sport fishing vessels in inland markets, and for MasterCraft/pontoon categories in coastal markets. He emphasized that the attractive portfolio and scale would create market-by-market opportunities for brand aggregation and expansion. Regarding Balise, Brad Nelson stated it continues its ramp with strong consumer interest and dealer feedback, and it will not be deprioritized. Scott Kent, CFO, added that each business unit operates independently, and Balise creates a 'halo effect' for the pontoon segment. Both Brad Nelson and Scott Kent expressed confidence in the deal's compelling business case and their ability to be good stewards of the brands, expecting it to work through the process.

Gerrick Johnson inquired about the strong performance of Brunswick's propulsion segment, with outboard sales up 26% and the boat business up 11%, inferring significant expansion in sales to OEM customers. He asked for details on this growth, distinguishing between contributions from existing customers and new wins.

Answer

Chairman and CEO David Foulkes and CFO Ryan Gwillim explained that Mercury is gaining market share, particularly in Europe, and has secured multi-year (some 5-year) exclusive supply agreements with large and fast-growing OEMs. They emphasized Mercury's strategy of fortifying share through these agreements, driven by best-in-class products and technology. David Foulkes mentioned hiring 60 new Mercury engineers in 2025 and having five new outboard programs underway. Ryan Gwillim added that engine pipelines at both dealer networks and OEMs are at historical lean levels, with mid-20,000 engines taken out of U.S. pipelines in 2024 and another 10% in 2025, leading to strong OEM demand.

Gerrick Johnson with Seaport Research Partners asked for deeper insights into the encouraging performance of recent boat shows (excluding Fort Lauderdale), seeking details on specific regions and segments, the impact of losing a day at the New York show, and the effect of the government shutdown on consumer behavior during the quarter.

Answer

CEO William Brett McGill stated that positive sentiment was observed across various boat shows in different markets, indicating good momentum for the spring selling season. He acknowledged that losing a day at the New York show has effects but usually balances out. Both executives agreed that external news like a government shutdown creates a "start-stop" effect on consumer demand, causing temporary slowdowns in buying trends.

Gerrick Johnson asked for more details on the encouraging early boat shows (excluding Fort Lauderdale), specific regions, and segments. He also inquired about the impact of losing Sunday at the New York boat show on the second quarter and the effect of the government shutdown on consumer demand during the quarter.

Answer

CEO William Brett McGill stated that positive sentiment was observed across various markets and shows, indicating good momentum for the spring selling season. He noted that while losing a day at a show has effects, it often balances out. Both CEO William Brett McGill and CFO Michael McLamb agreed that news like a government shutdown creates a 'start-stop' effect on consumer demand due to uncertainty, likely having a negative impact.

Gerrick Johnson asked if the company experienced any adverse impact from the government shutdown during the quarter. He also questioned whether there was any evidence of the monthly payment buyer returning during the early season boat shows.

Answer

Austin Singleton, Executive Chairman, and Jack Ezzell, CFO, confirmed that there was no adverse impact from the government shutdown. Jack Ezzell, CFO, and Anthony Aisquith, CEO, explained that while a majority of their premium customers finance purchases (60%+), they are not typically 'payment buyers' in the sense of being highly price-sensitive. They noted that the low-end, price-sensitive consumers who are more focused on monthly payments tend to gravitate towards value products, which OneWater Marine does not sell in large volumes.

Gerrick Johnson from Seaport Research asked if OneWater Marine experienced any adverse impact from the government shutdown during the quarter and whether there's evidence of the "monthly payment buyer" returning during the early boat show season.

Answer

Austin Singleton, Executive Chairman, and Jack Ezzell, CFO, confirmed no adverse impact from the government shutdown. Jack Ezzell, CFO, noted that over 60% of their premium customers finance purchases, which is consistent with historical trends. Anthony Aisquith, CEO, clarified that the "monthly payment buyer" typically seeks value products, a segment OneWater Marine does not heavily focus on.