Jakks posts Q2 loss

Jakks Pacific's latest financials show a huge quarterly loss of $406.5m.
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The firm also lowered its full-year profit outlook and said it will cut jobs to control costs.

Given the lower-than-expected sales forecasts across a number of products and lower gross margins, the firm said it will institute a restructuring plan to streamline operations, reduce costs and lower capital expenditures.

Joint CEO Stephen Berman said the cost-cutting efforts will include job losses.

"We are anticipating sales of core Jakks products to be lower than expected for this year due to continued softness at retail, coupled with underperforming lines in the current portfolio, such as Hannah Montana, WWE, Pokemon and Cabbage Patch Kids," joint-chief executive Jack Friedman added.

For the second quarter it posted a net loss of $406.5 million, compared with a profit of $4.2 million last year. Sales slipped slightly to $144.8 million from $145.3 million. It now expects to post a full-year loss of $375.6 million

The company incurred a pretax non-cash goodwill-impairment charge of $407.1 million in the quarter.

Net sales for the quarter were $145.4 million on a non-GAAP basis.

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