Funko Moving into Cereal

Funko’s licensed vinyl figures are moving into cereal. The company is packaging its licensed vinyl figures inside eight to 12 cereal boxes that will feature the properties’ branding on the outside. Organic Mills is manufacturing and packaging the cereal for Funko. The boxes will be labeled with the properties’ names, i.e. Five Nights at Freddy’s and Cuphead cereals. The cereals, which ship mid-summer, will be sold through select retailers such as Hot Topic, which will carry a Cuphead version, says Mark Robben of Funko.

Funko this summer also will launch at Target co-branded Pez dispensers that will feature Pop!-shaped vinyl heads featuring characters from Warner Bros. (Harry Potter, Batman, etc.) and General Mills (Cap’n Crunch), says Robben. Versions based on Hanna Barbera properties also are being developed, says Robben.

Contact:

Funko, Mark Robben, Head of Marketing, 425-783-3616 x191, mark@funko.com

Sears Plans to Close 72 Stores in ‘Near Future’

Sears Holdings will close 72 of the 100 stores it has pegged as unprofitable in the “near future” as it sharpens focus on its best remaining locations, CFO Robert Reicker told analysts. The stores will be shuttered by end of Q3 in November, he said. The news came as Sears’ swung to a $424 million net loss in Q1 ended May 5 from a $245 million profit a year earlier that include the sale of the Craftsman brand to Stanley Black and Decker. Revenue fell to $2.9 billion from $4.2 billion due largely to store closures as same-store sales fell 11.9% — down 9.5% at Kmart and 13.4% at Sears. During the quarter, Sears expanded its apparel DTR with actress Jaclyn Smith, and revenue included $425 million from Citibank, which extended its co- and private-label credit card agreement with Sears.

Contact:

Sears Holdings, Robert Reicker, Chief Financial Officer, robert.reicker@searshc.com

Build-A-Bear Forecast 10% Outbound Licensing Increase

Build-A-Bear forecasts revenue from “experiences” and licensing will increase 10% this year as it seeks transform into a “global branded intellectual property” company that has retail as one of its distribution channels, CEO Sharon Price John said as the company released financial results for Q1 ended May 5.

While the company currently relies heavily on retail – there are 352 company-owned and 96 franchised stores – it has signed 13 licensing agreements for the Build-A-Bear brand and has landed deals for its Kabu character (Inside Licensing May 29). It also is shifting emphasis of new store openings to tourist destinations, including the recent addition at Pier 39 in San Francisco and the Inner Harbor in Baltimore. The tourist area stores typically generate annual revenue above Build-A-Bear’s per store average of about $1 million, company executives said.

It also plans to have 40-45, 200 sq.ft. “concourse” shops in place by year-end, up from 23 at the end of 2017, CFO Voin Todorovic said.  The shops have typically been in malls where Build-A-Bear already has an in-line store, but have shorter leases. It also is opening a Build-A-Bear Bakery in the Mall of America in Minneapolis, its first aside from a single location in Missouri.

Net income in Q1 ended May 5 narrowed to $354,000 from $2.6 million a year earlier as revenue shrank 8% to $83.1 million. About $6 million of the revenue decline was tied to Toys R Us’ liquidating its inventory of plush at reduced prices, analysts said; 75% of Build-A-Bear stores are within five miles of a TRU

Contact:

Build-A-Bear, Voin Todorovic, Chief Financial Officer, 314-423-8000 x5221, vtodorovic@buildabear.com

Box Out Group Adds Cosmo to Subscription Service

The Box Out Group is expanding its assortment of Hearst Media licenses, signing a deal for a “Cosmopolitan” magazine subscription box service that will offer a package of beauty products for a $29 monthly fee. The initial collection of 13 items was curated by Cosmopolitan editors, is valued at about $200, and includes, among other things, L’Óreal Paris Ever Pure Deep Moisture Hair Sheet Mask, Klorane Dry Shampoo and Invisibobble Slim Hair Ties.

Box Out also has “Men’s Health” and “Runner’s World” boxes via licensing agreements that transferred to Hearst when it purchased Rodale. Box Out also launched a service with Biglari Holdings’ Maxim magazine in January and is readying a UCLA-licensed box for the fall targeting alumni.

Contact:

The Box Out Group, Darrel Branch, CEO, 561-289-9870, Darrel@theboxoutgroup.com

Hearst, Steve Ross, VP and Chief Global Licensing Officer, 212- 649-3259,  sross@hearst.com