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Disney Store sales still in decline
Licensing revenue stronger for entertainment giant
November 22 2003
Disney is still looking for a buyer for its lossmaking Disney Store retail chain.
In the three months to the end of September, the entertainment icon saw a 2 per cent decrease in total sales from its Consumer Products division, down to $560m, with sales across the year as a w
The dip was driven by a sales decrease in the struggling Disney Store chain, which is up for sale. Disney said like-for*#*8211;like store sales fell and margins were down in North America.
While total income for the quarter decreased by 2 per cent to $560m, profit increased by 24 per cent to $102m as the benefits of Disney*#*8217;s new retail partnership approach to consumer products kicked in.
Disney is working with key retailers to drive sales of licensed merchandise. In the UK, Marks & Spencer is rolling out Disney branded areas in 190 stores this month.
Strong performances by toy licenses, including Winnie the Pooh, Disney Princesses, the recently-acquired Power Rangers brand, and toys based on the Finding Nemo film all boosted sales.
Internationally, revenue from DVD and video declined in comparison to strong sales last year of films including Monsters Inc.
The company confirmed it is still seeking a sale of the Disney Stores operation, but gave no details of talks with any potential buyers.
The company now has around 500 Disney Stores worldwide, including more than 50 in the UK. A number of stores in North America have been closed over recent months.
The Japanese Disney Store operation was sold to a local retailer in a franchise-style deal last year.
Tagged as: Disney | Disney Store
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