Licensing powerhouse 4Kids Entertainment reported lower sales and sharply lower earnings in the second quarter compared to year-ago figures. Sales declined 14% to $19 million from $22.1 million last year; earnings dropped 68%, from $2 million in the second quarter of 2004 to $631,000 in the second quarter of this year. CEO Al Kahn attributed the decline to lower home video and international TV sales, as well as dropping sales of Yu-Gi-Oh! and Kirby merchandise and correspondingly lower licensing revenue. Improved licensing revenues for Winx Club (and AKC) in the U.S. and Shaman King internationally only partially offset the declines in those two brands. The stock dropped 7.65% on Wednesday, after the lower earnings were announced.