The EPS of JAKK's Q4 2024 fell short of expectations due to several key factors:
- Revenue Shortfall: Although JAKK's Q4 revenue was reported at $130.74 million, which is slightly below the consensus estimate of $133.28 million1, the discrepancy could be significant enough to impact the EPS calculation, especially if the revenue shortfall led to inefficiencies or additional costs.
- Cost Management: The company's cost management was highlighted as an issue. Increased direct selling costs and higher operating costs, particularly in the costume segment, could have squeezed profit margins and contributed to the EPS shortfall2.
- Market Conditions: The overall market conditions, including the post-Covid retail environment, may have posed challenges for JAKK's sales and profitability. Consumer behavior changes, such as customers adjusting their buying patterns, could have affected JAKK's performance2.
In summary, JAKK's Q4 2024 EPS fell short of expectations due to a combination of revenue shortfall, cost management issues, and challenging market conditions.