Net sales were $108.7 million, compared to $130.9 million year-on-year. The company had a net loss for the period of $10.8 million, or 40 cents per share, compared to net income of $0.9 million, or three cents per share in 2008.
Jack Friedman, chairman and co-chief executive officer commented: “Both sell-in and sell-through in the first quarter were light, as expected. And our results were also impacted by close-out sales that affected gross margins and by incremental overhead costs related to the addition of our newly acquired divisions.”
For the remainder of 2009, the firm is still expecting to grow full-year revenue above 2008 levels to $920 million.
Taking into consideration the economic climate and continuing margin pressures, however, Jakks is revising its earnings guidance to $1.70 to $2 per share.
President and co-chief executive officer, Stephen Berman added: “Our value-driven portfolio of products has been well-received by our retail partners. We believe our key items will be both appealing and attainable to consumers, and will buoy sales in the second half of the year.
“Strong contributors will likely come from our Girl Gourmet and EyeClops-branded product lines, as well as Disney pretend play products and various boys’ action toys, as well as Halloween costumes from our new Disguise division, which will not significantly contribute to revenues and profitability until the third quarter of this year.”