UPDATE 2-Jakks Pacific cuts '09 profit outlook, shares plunge
* Q1 loss/shr $0.40 vs est -$0.34
* Net sales $108.7 mln vs est $109.4 mln
* Still sees '09 sales of $920 mln
* Shares fall 21 pct
By Amitha Rajan
BANGALORE, April 23 (Reuters) - Toymaker Jakks Pacific Inc (JAKK.O: Cotización) posted a wider-than-expected quarterly loss, hurt by higher overhead costs and close-out sales, and cut its fiscal 2009 profit outlook due to continuing margin pressures, sending its shares tumbling 21 percent.
"We are feeling some margin pressure particularly from the retailers fighting for every penny and we did have in the first quarter some close-out merchandise that we had to get rid of," Chairman and Co-CEO Jack Friedman said on a conference call with analysts.
Jakks' announcement comes as a disappointment to investors, who were expecting the company to reaffirm its fiscal 2009 earnings outlook as well.
As toys are increasingly viewed as unnecessary amid a financial turmoil, retailers have been reducing inventories to avoid selling toys at huge discounts and piling up merchandise. Continuación...