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Disney expects retail sales to reach $23 billion
Mark Chediak | Sentinel Staff Writer
Posted June 21, 2006
The Walt Disney Co. said Tuesday it expects retail sales of its merchandise to jump 10 percent this fiscal year to $23 billion, driven in part by demand for products tied to its summer movies including the Pixar film Cars.
The entertainment company said continued demand for its Mickey Mouse, Winnie the Pooh and Disney Princess goods will lift sales. It also anticipates a heightened interest in products linked to upcoming movie releases such as Pirates of the Caribbean: Dead Man's Chest.
Disney, based in Burbank, Calif., receives licensing fees from merchandise sold by retailers including Wal-Mart Stores Inc. and Target Corp. The consumer products unit, which includes licensed goods, reported revenue of $2.13 billion in fiscal 2005. Operating income fell 3 percent to $520 million.
Consumer analyst Britt Beemer, the Orlando-based chairman of America's Research Group of Charleston, S.C., said the company's retail fortunes often rise and fall with the fate of its feature films.
"When they've got a popular movie, they do great," Beemer said. "When that movie is not so popular, they struggle."
Disney already is banking on product sales tied to Cars, which has netted $117.1 million in theaters since opening this month. The Cars merchandise launch is the largest for a Disney film since 1994's Lion King, Consumer Products Chairman Andrew Mooney said.
Mooney would not estimate the consumer product unit's sales or profit in the current fiscal year.
The company said it will expand its Disney Fairies line of goods, which will be tied to the fall 2007 release of the direct-to-video film Tinker Bell.
The consumer products division also said it will break out Tinker Bell retail sales from its Disney Princess line, which is projected to grow to $3.4 billion, a 15 percent increase over last year.
Other announced merchandise promotions include the release of additional Little Mermaid products tied to the October DVD release of The Little Mermaid and a new Disney Princess theme slated to launch next year.
Mark Chediak | Sentinel Staff Writer
Posted June 21, 2006
The Walt Disney Co. said Tuesday it expects retail sales of its merchandise to jump 10 percent this fiscal year to $23 billion, driven in part by demand for products tied to its summer movies including the Pixar film Cars.
The entertainment company said continued demand for its Mickey Mouse, Winnie the Pooh and Disney Princess goods will lift sales. It also anticipates a heightened interest in products linked to upcoming movie releases such as Pirates of the Caribbean: Dead Man's Chest.
Disney, based in Burbank, Calif., receives licensing fees from merchandise sold by retailers including Wal-Mart Stores Inc. and Target Corp. The consumer products unit, which includes licensed goods, reported revenue of $2.13 billion in fiscal 2005. Operating income fell 3 percent to $520 million.
Consumer analyst Britt Beemer, the Orlando-based chairman of America's Research Group of Charleston, S.C., said the company's retail fortunes often rise and fall with the fate of its feature films.
"When they've got a popular movie, they do great," Beemer said. "When that movie is not so popular, they struggle."
Disney already is banking on product sales tied to Cars, which has netted $117.1 million in theaters since opening this month. The Cars merchandise launch is the largest for a Disney film since 1994's Lion King, Consumer Products Chairman Andrew Mooney said.
Mooney would not estimate the consumer product unit's sales or profit in the current fiscal year.
The company said it will expand its Disney Fairies line of goods, which will be tied to the fall 2007 release of the direct-to-video film Tinker Bell.
The consumer products division also said it will break out Tinker Bell retail sales from its Disney Princess line, which is projected to grow to $3.4 billion, a 15 percent increase over last year.
Other announced merchandise promotions include the release of additional Little Mermaid products tied to the October DVD release of The Little Mermaid and a new Disney Princess theme slated to launch next year.
