Jakks reports losses, names new CEO

March 3, 2010 by Gary Rusak

Malibu, California-based toyco Jakks Pacific reported a 4Q and a double-digit revenue dip for 2009.

Net sales for Q4 were US$198.8 million compared to US$269.3 million in Q4 for 2008, and net sales for the full year of 2009 were US$803.7 million compared to US$903.4 million the year previous.

As part of the results reporting, CEO Jack Friedman announced he is stepping down effective April 1, 2010 but will continue as Chairman and chief strategist.

Jakk’s president Stephen Berman, will assume the position of CEO when Friedman steps down and said that the company is executing its ‘restructuring plan’ that includes divisional reorganizations and reduction in headcount, but expects net sales of between US$70 million and $74 million in 2010.

Berman added the introduction of the SpyNet line, new Halloween products and several new Disney initiatives should help offset declines in revenues Jakks’ Hannah Montana line and the truncation of its WWE licenses, but it won’t completely cover the gap.