Jakks Pacific’s net loss widened to $30.4 million in Q4 ended Dec. 31 from $7.6 million a year earlier as it took a $17.2 million charge for inventory impairment and shortfalls in minimum guarantees.

The wider loss came as Q4 revenue tumbled 18% to $136.6 million amid “significant declines” in sales of Frozen-, Graco-, Tsum Tsum- and Elena of Avalor-related products.

Sales of girls’ products fell 16% to $86.2 million, while those of boys’ products (Star Wars, Power Rangers and World Wrestling Entertainment) dropped 17% to $21.1 million. The downturn in boys was partly offset by strong sales of Black & Decker- and Nintendo-licensed products.

Jakks’ Halloween division was the lone business unit to post increased sales, with revenue rising 14% to $5.7 million. It recently added new licenses for MGA Entertainment’s L.O.L. Surprise and Activision Blizzard Entertainment’s Overwatch.

The sharpest drop in revenue was in pre-school products where sales fell 78% to $2.1 million as Jakks’ agreements for the Smurfs and Graco brands ended, the latter being replaced this year by the Chico label.

The company also tied the sales decline to Toys R Us’ bankruptcy. Jakks continues to ship product to Toys R Us and the “sell-through to date has been going quite well with store traffic building,” CEO Stephen Berman told analysts. “It is business as usual with them and we are being as cautious as we can be.” A Toys R Us spokesman dismissed reports that surfaced late last week of more store closings as “pure speculation” and that “decisions about our future store footprint and organizational structure will be based on the needs of a new business model.”

As Toys R Us works its way through bankruptcy, Jakks is expanding distribution to new channels, including dollar stores, Dick’s Sporting Goods and T.J. Maxx, Berman said.

Jakks also is developing original IP as part of its Studio JP joint venture with Meisheng Cultural and Creative Corp. The venture has released “Constellation High” in China. Jakks also continues to review an offer from Meisheng subsidiary Hong Kong Meisheng Cultural Co. to increase its stake in the company to 51% from 18%, Berman said.

Contact:

Jakks Pacific, Danny Sung, Chief Financial Officer, 310-456-7799, dsung@jakks.com