DHX Media Expects to Complete Strategic Review by June

DHX Media is “processing multiple opportunities” as it seeks to complete a strategic review of the company by June 30, CEO Michael Donovan told shareholders. Donovan didn’t reveal details, but the company said among options being considered are a sale of all or parts of the company. One goal of the review is to reduce the company’s debt, which stood at $839.5 million as of Dec. 31, much of it incurred in buying Peanuts Worldwide last year from Iconix for $345 million.

Meanwhile, Donavan said DHX plans to expand Peanuts Worldwide into “unexploited categories and territories” during the next year. Among these likely will be YouTube, where DHX already has a foothold with its Wildbrain service that features 30 channels. DHX also is weighing new long form content for Peanuts, which has 1,200 licensees, Donovan said.

The company also recently signed Alpha Group as a master toy licensee for its Massive Monsters Mayhem TV series that launched on Nicktoons earlier this year. DHX also is co-producing a new Polly Pockets series for release later this year, the first content to emerge from an alliance with Mattel that was formed in 2015.

Contact:

Michael Donovan, CEO, Michael.donovan@dhxmedia.com

Endemol Shine Reorganizes European Licensing

Endemol Shine Group reorganized its European licensing division, which is designed to sharpen focus on product categories, says a company spokeswoman. Jane Smith, formerly Commercial Brand Executive, was promoted to Director of Brand Licensing and Strategy, while Frances Adams, previously Global Director for Brands and Licensing, shifts to the Creative Networks Group. Ozen Kazim, formerly Senior Licensing Mgr.–International, switches to Head of Multi-Territory Brand Licensing for loyalty, travel, e-commerce, home shopping and experiential. Alice Bernardi remains Head of UK Licensing, and adds multi-territory responsibility for publishing, apparel, cookware, food, promotions, toys and games. Cameron Dicks shifts to Brand Licensing Executive-Games, having previously also handled licensing for digital apps and publishing.

Contact:

Endemol Shine Group, Jane Smith, Brand Licensing and Strategy Dir., jane.smith@endemolshine.com

Li & Fung, H&M Try to Quicken Pace of Business

In reporting financial results, both supplier Li & Fung and retailer H&M put a focus on the need to quicken the speed of parts of their business.

Li & Fung is trying to halve the time between product design and store delivery to about 20 weeks as part of a three-year plan introduced last year. In 2017, it reduced its overall delivery times to 32 weeks, a move that it says helped one of its largest private label customers, Kohl’s, to boost same-store sales 6.9% in Q4 ended Dec. 31.

Meanwhile, H&M, which blamed excess inventory and a 2% increase in markdown costs for a 1.7% sales drop in Q1 (ended Feb. 28) SEK46.1 billion, is trying to achieve next-day delivery on online orders to 90% of its European customers in 2019. That includes opening warehouses closer to its markets. Online sales jumped 20% in the quarter.

H&M ended the quarter with 7% higher inventory than a year earlier, as apparel left over from the fall ran into new spring arrivals in February, company executives said. The result was a 5.8% drop in gross profit.

H&M has more than 4700 stores and has ecommerce business in 45 countries, including the addition of Tmall in China under the H&M and H&M Home brands. It plans to open 220 stores this year, including a new off-price brand, Afound, in Stockholm.

Contacts:

Li & Fung, Spencer Fung, CEO, +852 2300 5000, sfung@lifung.com

H&M, Jyrki Tervonen, Chief Financial Officer, +46 8 796 55 00

Executives:

Vikram Sharma, ex-Disney, named VP Licensing and Consumer Products at Cartoon Network Enterprises – Asia, largely filling a role previously handled by Clement Schwebig, who remains CFO and keeps responsibility for location-based entertainment for Turner-Asia Pacific… Damien Marchi, ex-Havas, named VP Marketing at Gameloft.

Contacts:

Gameloft, Damien Marchi, VP Marketing, +33 1 58 16 20 40

Cartoon Network Enterprises-Asia, Vikram Sharma, VP Licensing and Consumer Products, vikram.sharma@turner.com