The Etch a Sketch manufacturer reported an increase of five per cent in its six monthly net sales to almost $9.5 million. Its quarterly results were also up by 12 per cent to more than $6.2 million.
The firm reported its shipments of Etch A Sketch and the new fashion doll line Betty Spaghetty were up, however other categories lagged behind. The firm believed retailer delays in releasing domestic toy orders could hamper the company’s ability to satisfy product demand in the next half of the financial year.
The reduction in domestic toy shipments also caused the firm’s net loss after taxes to increase significantly. Along with an increase in promotional expenses and costs from the correction of a product quality issue, the firm’s net loss after taxes was $1,200,000, more than double than 2006.
For Q2 Ohio Art experienced a net loss of $93,000 after taxes compared to a net income of $26,000.