JakksPacificLogoWhile profits were up at Hasbro and Mattel, and toy sales are up around the globe, Jakks Pacific saw income drop $406.5 million in Q2, compared to a gain of $4.2 million Q2 2008. Interestingly, sales were only down a little, from $145.3 million to $144.8 million.

How can this be?

The company took a $407.1 million goodwill impairment charge loss. The company took several other impairment charge losses, most of them intangible and related to “under-utilized” licenses. I.e. Hannah Montana, WWE, Pokémon and Cabbage Patch Kids are not selling as well as would be hoped. Which is odd, since The Hannah Montana Movie was only released a few months ago.

Please note that I am not an accountant, so I probably messed that up terribly. But that’s the gist.

Anyhoo, this means that Jakks will be firing people, and has lowered its profit expectations for the rest of this year.

(source, source)