Jakks Pacific drops 20% on weak toy sales

SAN FRANCISCO (MarketWatch) -- Toymaker Jakks Pacific slashed its 2011 sales and profit forecast Monday, sending its shares down 20% to $13.90 in early trades. Larger rival Mattel fell 1%, while Hasbro slid 2%. Jakks, which sells Pokemon and Cabbage Patch Kids, said it's been forced to mark down its toys "in what appears to be a difficult retail sales environment for toys." Jakks cut its sales target by 14% to $660 million, while its earnings are now projected at 37 cents to 40 cents a share. The old forecast had called for a profit of $1.32 to $1.35 a share. Based in Malibu, Calif., Jakks in early October rejected an unsolicited bid from Oaktree Capital Management, who had proposed buying the toy company for $20 a share. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

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