Operating loss for the second quarter 2017 was $14.1 million, down from $1.1m in the second quarter of 2016.
Jakks’ net sales for second quarter 2017 were $119.6m, compared to $141m reported in the same period last year. The reported net loss attributable for the second quarter was $16.7m, which included a non-cash charge of $2.3m related to the write-down of accounts receivable from 2014/2015 sales to an online retailer no longer in business. This compares to a net loss of $4.4m reported in 2016. Adjusted EBITDA for the second quarter was negative $5.4m, compared to Adjusted EBITDA of $4.0m in 2016.
Gross margin in the second quarter 2017 was 28.2%, down from 31.8% last year as a result of deleveraging of fixed costs, shifts in product mix and closeout sales in certain categories.
Jakks chairman and ceo Stephen Berman commented: “The decline in sales for the second quarter is attributable to several factors, including the consequence of suspending sales to one of our retail customers and the decline of several of our film-related licensed properties. Despite lower sales in Q2 and the first half of 2017 as we expected, we believe sales declines in the second half will be more modest.”