This is a stuffed animal, plush figure or other plush toy.
Here's a great warehouse find from 2001: a sweet stuffed Toro with Santa hat and big Christmas stocking, attached to a loop of ball chain! Act fast!
Please note that figures such as this are mass produced and as a result some inconsistencies in finish and painting may occur; these are not considered manufacturer's defects. If you absolutely must have perfection, prepare to do some touch-up work on your own.