... but net income dips and CEO reduces earnings forecast for 2008.Toy company Jakks Pacific has revealed its second quarter and first six months ending June 30th 2008.
Second quarter net sales were $145.3 million, compared to $129.5 million in the comparable period last year. Net income for the quarter was $4.2 million, compared with $5.0 million for the second quarter of 2007.
For the six months ending June 30th, the company reported net sales of $276.2 million, compared to $253.6 million during the same period in 2007. However, net income was down from $8.3 million to $5.0 million.
"We were pleased with the sales growth we experienced in the quarter despite a challenging retail environment," said Jack Friedman, Jakk's chairman and CEO. "We continue to see action figures, pretend play and dolls as category drivers, with contributions also coming from Plug It In & Play electronic products and other lines within our portfolio.
"We also continue to see increased fuel, raw materials and transportation costs, and increased costs related to litigation and product testing that affected gross margins and the bottom line."
Jakks' president and COO, Stephen Berman, added: "We have excellent placement for what we expect will be our top drivers based on top licensed and non-licensed brands, including our new EyeClops Night Vision Goggles, new Disney Hannah Montana products, including the Plug It In & Play Hannah Montana Pop Tour Guitar, Girl Gourmet Cupcake Maker and many other new products."
Friedman added that the firm remains confident about achieving its 2008 forecast for net sales of at least $891.4 million, however it is reducing its earnings forecast to $89.5 million in net income and $2.80 diluted EPS due to the higher costs it is experiencing in raw materials, transportation, product testing and litigation.