BeBe Stores Posts ‘Going Concern’ Notice

There is “substantial doubt” about BeBe Stores continuing as a “going concern” in 2018 with liabilities exceeding assets by $8.8 million, the company said in an SEC filing. BeBe, which shut its stores last year and shifted its business to a licensing joint venture, had $30.8 million in assets and $39.2 million in liabilities as of Sept. 30.

The company is trying to sell a building in Los Angeles to fund operations. BeBe formed BB Brand Holdings as a 50/50 joint venture with Bluestar Alliance last year. Earlier this year, Global Brands Group (GBG) signed a license to begin operating the BeBe web site (as of May 2, 2017) and the brand’s international business.

Contacts:

BeBe, Walter Parks, Chief Operating Officer, 415-715-3900

Bluestar Alliance, Ralph Gindi, Pres., 212-290-1370, rgindi@bluestaralliance.com

Dick’s Sporting Goods Seeking to Double Private-Label Sales

Dick’s Sporting Goods is seeking to double its sales of private label products to more than $2 billion “over a relatively short time,” Dick’s CEO Edward Stack told analysts. Among the brands are Calia – women’s fitness apparel the chain sells under an agreement with country singer Carrie Underwood – as well as Top Flite, Walter Hagen and Field and Stream, all purchased by the chain between 2010 and 2012.

Stack said that Dick’s will launch two more exclusive brands next year. The company is targeting about $1 billion in private label sales for the year ending Dec. 31, or 12-13% of annual revenue, up from 10% a year ago. While overall same-store sales declined 0.9% in Q3 ended Sept. 30, those for private-label goods rose by a “double-digits” percentage, Stack said.

“We do see this [private label] as a competitive advantage and a way to help offset some of the margin erosion we’re getting from the national brands,” Stack said.

Overall, Dick’s Q3 profit declined 24.5% to $36.9 million as revenue rose 7.4% to $1.94 billion. The chain will open 15-20 stores in 2018 (down from 59 this year) and close 3-5, the latter largely for relocations.

Contact:

Dick’s Sporting Goods, Edward Stack, CEO, 724-273-3400

Agencies

MHS Licensing now represents wildlife artists Jim Killen and Abraham Hunter. MHS will seek to bring Killen, who specializes in wildlife and sporting dog paintings, into puzzles, wall décor and home textiles, says MHS’ John Haesler. Hunter, a 23-year-old oil and acrylic artist previously represented by Hadley House, has signed six licensing deals, including those with Amia (suncatchers) and Cobble Hill Puzzle Co. (jigsaw puzzles)… Epic Rights now handles merchandise licensing for NSYNC, as the boy band prepares for its 20th anniversary in 2018. Epic Rights will seek agreements for ‘90s-inspired retro apparel, accessories, gift and collectible products. Winterland handled licensing at the peak of NSYNC’s popularity in the 1990s, but the group has been without a merchandise program for several years. The group last re-united in 2013.

Contacts:

Epic Rights, Dell Furano, CEO, 310-424-1901, dell@epicrights.com

MHS Licensing, John Haesler, john@mhslicensing.com, 952-544-1377

Markwins to Launch Shopkins Smackers Cosmetics Set at Target

Cosmetics firm Markwins International is hoping Shopkins Smackers cosmetics set borrows from history when it launches at Target in February. The 11-piece line includes “fruity vanilla” lip gloss that provides a new take on the multi-flavored Lip Smackers. Lip Smackers were popular in the 1970s and 1980s when they were marketed by Bonne Bell Cosmetics, which produced about 400 flavors. Bonne Bell was sold to Markwins International in 2015.

Contacts:

Moose Toys, Alexandra Ries, VP U.S. Marketing and Strategy, 310-341-4642, alex.ries@moosetoys.com

The Licensing Shop, Steve Fowler, Founder, 416-322-7300 x201, steve@thelicensingshop.com

Markwins International, Bill George, Pres. and Chief Operating Officer, 909-595-8898

Target’s Q3 Revenue Increases on Private Label Sales

Target’s profit for Q3 ended Sept. 30 slipped 21% to $480 million despite revenue increasing 1.4% to $16.6 billion as the chain continued its march to expand its assortment of private-label products. Joy Lab (women’s workout apparel) and New Day (dresses) private labels joined five other Target brands in the quarter. Target said earlier this year it planned to introduce a dozen private label brands over two years (Inside Licensing March 1)

Same-store sales climbed 0.9%, above the 0.4% forecast by analysts. And while Target has “high confidence” and is in a “strong position” in Q4, it lowered the earnings forecast for Q4 to $1.04-$1.24 from $1.24-$1.26 on same store sales projected to be flat to up 2%, as it braced for what CEO Brian Cornell said will be a highly competitive holiday sales season.

“We think Target’s Q3 results serve as a reminder that while the company is making progress, its turnaround is likely to unfold at a measured pace,” UBS Analyst Michael Lasser said.

At the same time Target boosted the forecast for year-end earnings to $4.40-$4.60 from $4.34-$4.54 as sales of private label products helped boost gross margin one percent in. The chain also is “pleased” with initial sales of the 300-piece Home & Hearth tabletop and home décor line developed with Chip and Joanne Gaines, co-hosts of HGTV’s “Fixer Upper” series, Cornell told analysts. The line launched this month. As a result of the new private label brands, Target ended Q3 with $10.5 billion in inventory, up from $10 billion a year earlier.

Contacts:

Target, Brian Cornell, CEO, 612-696-3400, brian.cornell@target.com

UBS, Michael Lasser, analyst, 212-713-2440, Michael.lasser@ubs.com