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Jakks Pacific sees Q4 sales dip, but bump in overall 2008 take

Weak holiday sales meant a rocky Q4 2008 for Jakks Pacific and others, but overall year-end net sales were up for the toyco.
February 18, 2009

Weak holiday sales meant a rocky Q4 2008 for Jakks Pacific and others, but overall year-end net sales were up for the toyco.

Q4 net sales were down to US$269.3 million from the US$285.1 million in the comparable period last year, with net income sliding sizably in same quarter to US$16.9 million from US$33.4 million in Q4 2007.

However, net sales for year ending December 31, 2008 saw a notable increase to US$903.4 million, compared to US$857.1 million during the same period in 2007. Net income, meanwhile, took a dip to US$76.1 million last year, compared to earnings of US$89.0 million for the year end in 2007.

Chairman and CEO Jack Friedman stated that while retail sales for EyeClops Night Vision Goggles, Girl Gourmet product line, Disney pretend play products and others performed well, the flailing economy took its toll in the fourth quarter where the toyco saw declines in licensed product, such as Hannah Montana and Care Bears. He also stated that the year’s earnings were affected by rising costs in labor, raw materials and testing.

2009 will see Jakks focusing on price-value products, with the majority of the lines retailing for less than US$20.

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