Total Revenue

+4% " "

Higher sales in the Toys/Consumer Products segment helped offset declines in other areas, reflecting a normalization of supply chain conditions and continued demand for core product lines. Retailers also shifted toward more typical ordering patterns, boosting overall revenue growth.

Toys/Consumer Products

+7% " " " "

Growth was driven by content-related product launches and improved distribution in North America, mirroring the positive trends seen in prior quarters when popular entertainment tie-ins spurred sales. " " The company also benefited from stronger international performance in select markets where logistical challenges eased.

Costumes

-10% " " " "

The decline reflects fewer early shipments compared to the prior year, when customers accelerated orders to mitigate supply chain risks. " " Additionally, cautious retailer ordering this season and a slight drop in recurring customer orders contributed to the year-over-year reduction.

Operating Income (EBIT)

+41% " "

Tighter cost controls and improved gross margins from earlier quarters continued into this period, leading to higher profitability. The company also reduced certain overhead expenses and streamlined operations, further boosting operating income. " "

Net Income

+20% " "

This increase stemmed from stronger operating margins and lower interest expenses, as debt paydowns reduced financing costs. Steady performance in the Toys/Consumer Products segment and cost discipline across various departments supported net income gains.

EPS (Diluted)

+17% " "

Higher net income and fewer outstanding shares (due to share repurchases or reduced dilution) drove the improvement in EPS. These factors outweighed the impact of lower sales in certain product categories, reflecting the overall increase in profitability. " "

COGS

+7% " "

Although unit sales growth contributed to a higher absolute cost of goods, improved product mix and stable manufacturing costs helped contain margins. In prior periods, elevated shipping and logistics expenses placed upward pressure on COGS, but those costs normalized somewhat in this period. " "

SG&A

-9% " "

A company-wide focus on expense management and lower professional fees reduced SG&A as a percentage of sales. In contrast to prior quarters where expanding international operations drove SG&A up, the company recalibrated headcount and marketing costs, yielding year-over-year savings. " "

Interest Expense

-62% " "

The company’s early retirement of higher-interest debt and lower borrowing under its revolving credit facility significantly reduced interest costs. Compared to previous quarters, when interest on long-term loans weighed on earnings, the improved capital structure drove a notable decrease in total interest expense. " "

Gross Margin

FY 2024

no prior guidance

Minimum of 30% " "

no prior guidance

New Product Launches & Licensing Strategies

Q1 emphasized launches tied to Moana 2, Sonic 3, and The Simpsons " ; Q2 focused on The Simpsons, Disney role-play, Disguise costumes, and broad IP-driven products " " " ; Q4 highlighted revamped Simpsons, skateboards, Moana 2, and Sonic initiatives. " "

Q3 detailed several new launches – Dog Man products, Target toy check lane, expanded Nintendo, Sonic 3, Moana 2, The Simpsons, and outdoor items – along with portfolio management and non‐theatrical IP strategies. " " " "

Consistent focus with evolving innovation and quick market responsiveness.

Gross Margin Management & Evolving Financial Outlook

Q1 noted margin pressures from price promotions and forecasted challenges " " ; Q2 reported margin improvements (up 130 basis points) and strong EBITDA targets " " ; Q4 showed significant margin gains with improved landed costs and reduced freight. " " "

Q3 reported a 33%+ gross margin with modest gross profit improvements and confidence in a 30%+ full‐year target. " "

Continued focus resulting in stronger margins over time despite early promotional pressures.

International Expansion & Global Distribution

Q1 emphasized growth in European and Mexican markets with renewed international engagement " " ; Q2 noted new logistics centers in Italy and Spain and expanding product lines internationally " ; Q4 detailed new distribution centers and offices in Italy, Belgium, and France, as well as strong Latin America growth. " "

Q3 highlighted Latin America as a major asset with 48% shipment growth, ongoing account expansion in Europe, and new private label initiatives planned for 2025. " " "

A consistently strategic focus with Latin America emerging more strongly and continued infrastructure investments abroad.

Supply Chain & Logistics Disruptions

Q2 mentioned container challenges in Europe that were resolved through logistics improvements " ; Q4 discussed higher shipping costs and longer transit times in Europe plus inventory adjustments " ; Q1 had no explicit disruption details. "

Q3 noted disruptions such as East Coast port issues and the development of an EU hub-and-spoke warehouse system to improve replenishment. " "

Recurring theme with proactive mitigation measures evolving over time.

Retailer Collaboration & Quick-to-Market Shelf Space Strategies

Q1 focused on finalizing promotional and retail placement commitments, including securing dedicated shelf space for new releases " " ; Q2 underscored strong retailer partnerships (e.g. Target’s vendor award, quick launches with ABG) " " ; Q4 mentioned key retail presentations at major accounts. "

Q3 emphasized strong global retailer relationships, obtaining additional shelf space through exclusive products, out-of-aisle placements, and fast reactions to successful IPs. " " "

Consistent and robust, with an ongoing emphasis on agility and maximizing consumer touchpoints.

Capital Allocation, Debt-Free Status, and Liquidity Management

Q1 discussed preferred share redemption, targeting enhanced working capital and a move toward a debt-free balance sheet " " ; Q2 highlighted becoming debt-free, exploring dividends and buybacks, and a focus on free cash flow with low inventory levels " " ; Q4 detailed significant debt reduction, improved cash metrics, and proactive inventory adjustments. " "

Q3 reiterated a debt-free status with disciplined capital allocation, strong liquidity management (notably lower interest expense), and effective working capital controls. " " "

A consistently improving financial strategy focused on reducing debt and strengthening liquidity.

Competitive Dynamics & Dependence on Competitors' Weaknesses

Q2 showed interest in leveraging competitors’ bankruptcies to acquire assets or licenses " ; Q4 noted competitors’ struggles amid market adjustments and relied on evergreen IPs to stand out. "

Q3 highlighted the ability to capture “white space” left by competitors’ shipping or performance issues, using quick-to-market tactics and exclusive products to secure shelf space. " "

A continuously exploited strategy—capitalizing on competitors’ weaknesses with agile market responses.

Evolving Sentiment on New IP Rollout Timing & Inventory Management

Q1 detailed challenges from a disappointing theatrical release that led to excess inventory and a return to promotional selling " " ; Q2 emphasized low inventory levels (lowest since 2010) paired with optimism for upcoming initiatives " " ; Q4 underscored improved inventory management, clean stock levels, and strategies to maintain a “sweet spot” for pricing. " " "

Q3 described a cautious retailer sentiment on new IPs, opting for conservative stocking strategies to mitigate risks while managing inventory leanly. "

A cautious evolution, with lessons from past overstocking driving a balanced approach to new IP timing and inventory control.

Decline in Emphasis on Blockbuster Movie Tie-Ins

Q1 observed a reduced excitement from blockbuster tie-ins due to the absence of major films and a pivot to evergreen products " " ; Q4 mentioned a drop in blockbuster-driven impulse purchases and a strategic focus on established IP for steady sales. " "

Q3 reiterated a decline in prioritizing blockbuster tie-ins, favoring strong evergreen franchises and selective entertainment properties to maintain long-term consumer interest. " "

A deliberate strategic shift away from heavy reliance on blockbuster movies toward a more sustainable evergreen portfolio.