Jakks Pacific has seen a dip in its year on year fourth quarter sales, citing the bankruptcy of Toys R Us as a large contributor to its soft end of year financials.
The US toy firm has seen net sales drop to $136.6 million compared to $167 million reported in the prior year period.
Gross margin for the firm was 22.1 per cent, down from 31.2 per cent it achieved one year prior, while net loss attributable to Jakks was $30.4 million.
Stephen Berman, Jakks Pacific chairman and chief executive officer, said: “A number of factors contributed to a soft fourth quarter, including the bankruptcy of Toys R Us, as well as the continued decline of some legacy product lines that were not fully offset by new launches.
“Some of the shifts we saw last year in consumer habits – buying more online and less in stores, and less interest in some film licenses, were even more pronounced in 2017.
“That being said, we did see a number of product lines with sales growth and improved performance in the quarter. As we look to 2018, we will continue to expand our retail private label programmes and exclusive product initiatives and we are excited to launch a number of new major licenses.
“Moreover, we have positioned ourselves well for the future with our investments in skincare and cosmetics, as well as augmented reality and content to cater to the needs of the young, modern consumer.”
Berman concluded by highlighting the ‘several aggressive steps’ the firm has taken in to ensure its core brands and new products can allow the company to grow sales and return to profitability in 2018.