Jakks Pacific Inc. late Friday cut its full-year earnings outlook after warning that toy sales have been disappointing so far this holiday season.
The Agoura Hills company, which makes licensed toys based on properties such as Pokemon and Hello Kitty, said it expected to take higher markdown allowances and have higher royalty expenses related to the payment guarantees it makes to companies from which it licenses products. It cited a “difficult retail sales environment for toys.”
Jakks now expects full-year adjusted earnings of 37 to 40 cents a share, with net sales of about $660 million. The company had earlier forecast a profit of $1.32 to $1.35 a share on sales of $770 to $775 million.
Analysts surveyed by Thomson Reuters on average are expecting the company to earn $1.34 a share on sales of $768 million.
Shares earlier closed down 10 cents, or less than 1 percent, to $17.35 on the Nasdaq.
