Executive Changes

Changes at Universal Brand Development: Joe Lawandus, ex-Mattel, named Senior VP and General Manager for North American Consumer Products, joing the company in September;  Marc Low, currently Senior VP of International,  now will be  Senior VP and General Manager for International Consumer Products. Both will report to Vince Klaseus, President of Universal Brand Development. Manuel Torres Port will depart his post as Executive VP Worldwide Consumer Products at the end of the month… Jess Richardson, ex-WWE, joins Netflix as Director of Global Licensing, Merchandising and Promotions… Stephanie Cheng, ex-Draper James, named Client Services Mgr. at Brandgenuity… Brad Haley, ex-CKE Restaurants, named Chief Marketing Officer at IHOP effective Aug. 14, replacing Kirk Thompson.

Contacts:

IHOP, Brad Haley, Chief Marketing Officer, 818-545-1988

Brandgenuity, Stephanie Cheng, Client Services Mgr., stehpanie@brandgenuity.com

Gildan Weighing Licensing For American Apparel Brand

Gildan is considering licensing out its newly acquired American Apparel brand, but is focusing for now on launching the label through a direct-to-consumer web site that’s due by month’s end, says a company spokesman. Gildan, which bought the assets of bankrupt American Apparel earlier this year for $88 million, is readying a new line of 100 styles across t-shirts, jeans, leggings, dresses and other products that will be sold through an American Apparel web site in the U.S. before expanding into Canada and other international markets in 2018. Gildan sells apparel in 55 countries.

Gildan plans to focus distribution of the American Apparel brand at mass, says the spokesman. “We have many opportunities for this brand at retail and possibly in licensing arrangements and those are all being explored,” says the Gildan spokesman.

Gildan posted American Apparel sales of about $8 million in Q2 ended July 2 and projected the brand generating $50-$70 million in sales in Gildan’s fiscal year ending Dec. 31, company executives said. Gildan’s printwear revenue rose 2% in Q2 to $480 mllion. Meanwhile, Gildan has no plans to expand its base of licensed brands, which currently includes New Balance (activewear), Under Armour (socks) and Mossy Oak (socks, activewear), said CEO Glenn Chamandy.

Contact:

Glenn Chamandy, CEO, 514-735-2023, gchamandy@gildan.com

Electronic Arts Forecasts Sales of 14 Million Units for New Star Wars title

Electronic Arts is projecting sales of 14 million units for its upcoming “Star Wars Battlefront II” title that is slated to launch in November, in front of the theatrical release of Star Wars: The Last Jedi that is scheduled for release in December. The company sold about 13 million units of the first Battlefront title in the 2015 holiday season tied to Star Wars: The Force Awakens in generating about $660 million in revenue from the game. “The sentiment” around the new Star Wars game, which has been “really, really strong,” said EA’s Andrew Wilson.

Trailers and user-generated content for the new Battlefield title had received more than 117 million views as of late July, Wilson said. Meanwhile, EA’s sales of mobile games rose 6% to $150 million in Q1 ended June 30, driven by “Star Wars: Galaxy of Heroes,” “FIFA Mobile” and “NBA Mobile,” company executives said. The mobile games results don’t include Madden Mobile 18, due to be released later this month. The Madden mobile games, first released in 2014, typically generate $50-$100 million in annual revenue, company executives said.

Contact:

Electronic Arts, Laura Miele, SVP, 650-626-1500 x87277, lmiele@sa.com

Belk Spending $40 Million on Store Openings, Remodels

As many department stores chain halt expansion amid slowing sales, Belk will spend $40 million to open three new stores this fall and remodel a dozen others, the company said. The three new locations in Evans, GA, Bowling Green, KY, and Hagerstown, MD, will feature a new “buy online, pick up in store” service and are among the first major moves the 292-store chain has taken since hiring former Hot Topic executive Lisa Harper as CEO in July 2016.

Contact:

Belk Stores, Lisa Harper, CEO, 704-357-1000

Etsy takes $11 Million Charge for Layoffs

Etsy took an $11.3 million charge against earnings Q2 ended June 30 as it slashed 245 jobs in a cost-saving move, company executives told analysts. The layoffs, which occurred in and May and June, were among the first major moves the company has made since it named Josh Silverman CEO in May. Etsy had 877 employees as of July 26. Meanwhile, Etsy swung to a $7.3 million net loss in Q2 against a $11.6 million profit a year earlier as revenue rose 19% to $101.6 million, driven by a 25% gain in seller services revenue. Etsy had about 1.83 million sellers at the end of Q2, up from 1.65 million a year earlier as the number of “active buyers” – those that have made purchases in the past 12 months – rose to 30.6 million from 26.1 million.

Contact:

Etsy, Linda Findley Kozlowsi, Chief Operating Officer, 718-880-3660

Netflix Acquires Comic Book Publisher to Gain IP

Netflix acquires comic book publisher Millarworld, its first purchase of an outside company as it moves to expand its base of original content. Several Millarworld titles have been made into movies, including Kick-Ass and Kingsman.

Contact:

Netflix, Tara Sinclair, Licensing Specialist, 408-540-3700 tsinclair@netflix.com

Overwatch eSports League Will Have Revenue-Sharing Deals for Consumer Products

The new Overwatch eSports League, scheduled to launch late this year, will have revenue-sharing deals with each team covering a range of categories including consumer products and purchases of digital in-game merchandise, Activision Blizzard Entertainment Chief Financial Officer Spender Neumann told analysts. Seven teams – Boston; New York; Los Angeles; Miami-Orlando; San Francisco; Shanghai and Seoul – have signed on. In addition to revenue-sharing, each team will get revenue from local merchandise sales, Neumann said. Activision, whose Blizzard Entertainment Division developed Overwatch, will get “modest” revenue from the league in Q4 ending Dec. 31, Neumann said.

Contacts: Activision Blizzard Entertainment, Spencer Neumann, Chief Financial Officer, 310-255-2000, spencer.neumann@activision.com

Merlin Entertainment’s Legoland Park-Related Revenue Soars

Merlin Entertainment’s operating profit related to its Legoland Park rose 26.7% to £67 million as revenue increased 34.6% to £267 million, partly benefitting from the opening of a new facility in Nagoya, Japan in the fiscal first half ended July 1, Merlin Chief Financial Officer Anne-Francois Nesmes told analysts. The Japan park has attracted 500,000 visitors since opening in Japan on April 1 and generated revenue of £24 million through July. The Legoland Park in Japan will add a hotel and Sea Life center in 2018.

Merlin also has received preliminary approval from a Town Board in Goshen, NY, for a $500 million Legoland Park. A proposed 30-year agreement will pay the town 65 cents for each of the park’s first two million annual visitors and 20 cents for each person thereafter, with no cap on payments. Marlin projected the Goshen, NY park will attract 1.5-2.5 million visitors annually during a season stretching April-October. Merlin is targeting getting final approvals for the project this fall.

As Legoland Park’s revenue increases, Merlin’s 18 Legoland Discovery Centers have suffered “some softness” in North America tied to sluggish sales Lego products at retail. There are 10 Lego Discovery Centers in North America, including a new location in Philadelphia, PA that opened in the spring. Overall, Merlin’s first half operating profit jumped 5.1% to £73 million as revenue increased 19.4% to £685 million.

Contact:

Merlin Entertainment, Anne-Francoise Nesmes, Chief Financial Officer, +44 1201 6669000

Party City Testing Buy Online – Pick Up in Store Service

Party City will test a new service this fall in a handful of markets enabling consumers to buy products online and pick them up in a small number of its 936 stores, CEO jim Harrison told analysts. At the same time, Party City also will test its new Kazzam online marketplace in Dallas, matching party hosts with party services. Kazzam will allow users to choose from a range of vetted service providers for party activities and entertainment as well as ordering supplies. Party City owns 30% of Kazzam, which it’s developing with investment firm Ampology.

Meanwhile, the company’s Q2 net income rose 10% to $24.9 million on a 4.9% increase in revenue to $544.9 million despite “an absence of strong licensed properties” during the quarter, Harrison said. Same –store sales rose 0.1%.

Contact: Jim Harrison, CEO, jharrison@partycity.com