Total Revenue

+2.6% (from roughly $127.5M to $130.74M)

Slight overall revenue growth was driven by a sharp increase in the Costumes segment (+45% YoY) which offset the nearly flat performance in Toys/Consumer Products; however, rising product costs contributed to margin pressures compared to prior periods. " " " "

Toys/Consumer Products

Nearly flat (from $118.87M to $118.22M)

The segment maintained stable sales, reflecting balanced demand in contrast to previous periods where mixed market conditions were noted; this stability is in line with the company’s historical performance. " "

Costumes

+45% (from $8.6M to $12.48M)

A dramatic rise in the Costumes segment, growing by 45% YoY, suggests a robust return to normal ordering patterns and stronger demand compared to previous periods which saw varied performance due to seasonal and supply chain factors. " "

Cost of Goods Sold (COGS)

+212% (from $68.87M to $215.27M)

An explosive increase in COGS by over 212% YoY indicates that rising product costs (and perhaps changes in inventory or product mix valuation) are now a major headwind, sharply contrasting with earlier periods where improved supply chain management helped drive costs down. " "

Operating Income

Deteriorated to a loss of $34.76M from a loss of $15.34M

The operating loss deepened as the rising COGS and increased overhead combined with only modest revenue growth, reversing earlier improvements seen in prior quarters where gross margin expansion had supported operating income. " "

Net Income

Worsened to a loss of $14.79M from a loss of $10.87M

The net loss grew as the higher cost base (particularly the surge in COGS) and operational challenges outweighed the modest sales increases, leading to further deterioration in diluted EPS (from -$1.10 to -$1.44) compared to the previous period. " "

Interest Expense

Increased from $71K to $157K (more than doubled YoY)

Interest expense more than doubled due to a rise in borrowing costs or changes in the company’s debt profile, which contrasts with earlier periods where debt reductions had helped lower the expense. " "

Gross Margin

FY 2024

minimum of 30% gross margins on a full‐year basis " "

no guidance provided for FY 2024

no current guidance

Financial Strength and Capital Allocation Strategy

In Q1–Q3, discussions focused on achieving a debt‑free status, improving cash flow and liquidity, and cautiously evaluating capital allocation options (acquisitions, buybacks, or dividends) as seen in Q1 ( " " " ), Q2 ( " ), and Q3 ( " " ).

Q4 emphasized an even stronger financial position with no long‑term debt, robust free cash flow, and the initiation of a quarterly dividend, reinforcing shareholder returns ( " " " ).

Consistent focus with enhanced capital return measures and overall positive sentiment.

Retail Presence and Global Expansion

Across Q1–Q3, the company highlighted securing additional retail placements, launching private label initiatives, and expanding internationally (notably in Europe and Latin America) through improved infrastructure and strategic partnerships ( " , " , " , " , " ).

In Q4, the narrative continues with an emphasis on value‑focused retailers and e‑commerce events, alongside robust Latin American growth (e.g., $38M sales with 19% growth) and further expansion of European facilities ( " " " ).

Continued expansion with increased emphasis on diversified channels and international market growth.

Licensed IP Portfolio and Blockbuster Dependence

Q1 through Q3 discussions mixed blockbuster‐tied product launches with efforts to build an evergreen, diversified IP portfolio, balancing the impact of major films with stable, non‑blockbuster offerings ( " , " , " , " ).

Q4 underlined a diversified licensed IP portfolio that lessens the company’s reliance on blockbuster successes, showcasing a broader strategic approach ( " ).

Shift toward broader diversification and reduced blockbuster reliance while balancing growth drivers.

Gross Margin Performance and Pricing Pressure

In Q1, margin pressures were noted due to promotions and lower sales volume ( " , " ), while Q2 and Q3 showed gradual improvements with Q3 maintaining strong margins over 33% and effective pricing points ( " , " , " ).

Q4 reported a 70‐basis-point improvement in gross margin—despite challenges such as inventory obsolescence—while continuing to focus on affordable price points to manage cost pressures ( " ).

Gradual margin improvement with cautious pricing management amid rising cost pressures.

Inventory Management and Supply Chain Efficiency

From Q1 to Q3, the focus was on lean inventory practices (using a predominantly FOB model), reducing inventory levels, and investing in European hub‑and‑spoke systems to boost efficiency ( " , " , " , " ).

Q4 maintained the disciplined approach by sustaining high FOB percentages and launching new distribution centers in the EMEA region, further enhancing supply chain efficiency ( " , " , " ).

Consistent, disciplined approach with incremental enhancements in European supply chain capabilities.

Currency and Tariff Risk Management

Not mentioned in Q1, Q2, or Q3 earnings calls.

Q4 introduced proactive management of currency risk by leveraging a high percentage of USD‑denominated sales and reviewing tariff impacts to maintain cost competitiveness ( " , " ).

Emerging topic with a proactive risk mitigation approach not previously discussed.

Competitor Dynamics and Market Share Vulnerability

Q3 provided detailed commentary on competitor challenges and opportunities to capture additional shelf space, while Q1 and Q2 were minimal on this issue ( " , " , " , " ).

Q4 briefly touched on market share in the U.S. costumes segment and opportunities arising from competitors’ financial struggles, but overall, competitor analysis was less emphasized ( " ).

Decreased emphasis on competitor dynamics as focus shifts more inward to internal growth strategies.

Expansion into New Markets and ABG Initiatives

Throughout Q1–Q3, there was a consistent focus on international expansion (e.g., Europe and Latin America) and launching new product lines via ABG partnerships and private label initiatives ( " , " , " , " , " , " , " , " ).

Q4 continued to stress expansion into new markets with diversified retail channels and bolstered private label initiatives, reinforcing the company’s commitment to global diversification ( " , " , " ).

Steady progression with reinforced commitment to global market diversification and strategic ABG collaborations.

Liquidity and Capital Return Concerns

Q1 discussions addressed liquidity challenges following a preferred share redemption ( " , " , " ), while Q2 and Q3 showcased improvements with debt‑free status and strong liquidity positions as part of capital allocation deliberations ( " , " , " , " , " ).

In Q4, the company announced a quarterly dividend along with robust free cash flow generation and maintained liquidity, emphasizing a carefully balanced capital allocation strategy ( " , " , " , " ).

Progressively strengthening liquidity with enhanced capital return policies and a clear focus on shareholder value.