View Full Version : Disney Scales Back Earnings Estimates

03-19-2003, 05:28 PM
From the Seattle Post Intelligencer:A sluggish retail environment and continuing declines in tourism led The Walt Disney Co. on Wednesday [3/19/03] to trim earnings estimates for 2003.

Earlier, Disney had said revenue would grow between 25 percent and 30 percent for the full year. However, Disney chief financial officer Thomas Staggs said weakness in the economy would result in "more moderate growth" for this year. He did not offer specifics.

Analysts have previously said Disney may have overestimated its earnings outlook, given economic conditions.

Staggs, speaking to Disney shareholders at the company's annual meeting in Denver, said war jitters have hurt attendance at Walt Disney World in Florida, although attendance has improved at the Disneyland Resort in California.

Disney's Florida resort is more dependent on air travel while Disneyland draws more of a local crowd.

Staggs also said that a decline in retail sales hurt the company's Disney Stores. Still, he remained confident about the momentum of the company's merchandise licensing business.