Jakks Pacific Inc. reported a second-quarter loss due to one-time charges and the poor economy, and lowered its full-year guidance. The Malibu toy maker announced it would be lowering its headcount to compensate.

The company late Tuesday reported a loss of more than $406 million (-$14.96 per share), compared with a profit of $4.2 million (15 cents) a year ago. Sales fell slightly from more than $144 million to less than $146 million.

Excluding several charges for goodwill impairment, recall costs and other issue, the company reported an adjusted loss of $900,000, or 3 cents per share. Analysts surveyed by Thomson Reuters on average expected an adjusted loss of 3 cents per share on revenue of nearly $134 million.

Among several charges the company took was a $407 million pretax non-cash goodwill-impairment charge. The company, which makes toys based on the Hannah Montana, WWE, Pokemon and Cabbage Patch Kids lines, said it would continue cutting costs, including job reductions and office consolidations, because it expects the weak retail environment to continue.

The company lowered its full-year guidance, saying it now expects to post a loss of $13.54 per share on sales of $810 million, with adjusted net income of $1.01 per share. That compared to previous guidance for adjusted net income of $1.70 to $2 per share on revenue of $920 million. Analysts are expecting the company to earn $1.69 per share on revenue of more than $898 million.

“We continue to experience challenges that are affecting our top and bottom lines, and are clearly in the midst of one of the most difficult economic environments in Jakk’s history,” Co-Chief Executive Jack Friedman said in a statement.

Jakks shares fell Monday after an arbitrator determined that partner Jakks Pacific Inc was entitled to 40 percent lower preferred return payment rate from their World Wrestling Entertainment video game joint venture than Jakks had sought. The company took a non-cash charge of $22.5 million related to the reduction.

Shares closed down 27 cents, or 2 percent, to $11.43 on the Nasdaq.