Tycoon, CPLG Form “Strategic Alliance”

Tycoon Enterprises and CPLG forge a strategic alliance, the first fruits of which will produce new deals within 3-4 weeks for representing entertainment and corporate brands, CPLG’s Steve Manners told us.

The new partnership will have coverage stretching across Europe, North America and Latin America and share a licensor in NBCUniversal. Under the agreement, either of the agencies can take the lead in representing a licensor.

The alliance will give Tycoon potential access to markets outside Latin America for the first time and provide CPLG with strength in live events licensing. In addition to its base in Mexico, Tycoon has offices in Brazil, Chile, Columbia, Costa Rica and Peru. CPLG, which was acquired by DHX Media in 2012, has global offices, its most recent being in Turkey.

Contact:

CPLG, Steve Manners, EVP, +44 7534 509111, smanners@cplg.com

Dick’s Paring Vendors in Move Toward Private Labels, Exclusives

Carrie Underwood’s Calia activewear will be a “key pillar” in Dick’s Sporting Goods’ new strategy that sharpens its focus on private label and exclusive brands, Dick’s Edward Stack told analysts. Calia, launched in 2015 in a DTR deal, is projected by Dick’s to generate $1 billion in sales this year as it expands an assortment of leggings, capris, headbands and swimsuits, company executives said.

As part of its plan, Dick’s is dropping 20% of its vendors and readying two new private label brands, Stack said. In doing so, Dick’s also is creating two tiers of suppliers: strategic vendors that provide exclusive product and to whom the chain “will overtly move more market share,” and those with standard “transactional” agreements.

“This will give us an opportunity to showcase private label and exclusive brands that drive the business,” Stack said. Among the brands that will lose out as Calia gains more shelf space will be VF Corp.’s Lucy Activewear, company executives confirmed.

As Dick’s revamps its merchandise mix, the chain plans to open 43 new locations this year, including 19 former Sports Authority stores it acquired in 2016. Meanwhile, Dick’s net income for Q4 ended Jan. 28 declined 30% to $90.1 million as the retailer took a $46 million write down on inventory that didn’t mesh with its new strategy. Dick’s Q4 sales rose 10.9% to $2.5 billion on a 5% gain in same-store sales.

Contact:

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

Party City Takes Big Stake in Mexican Vendor

Party City buys an 85% stake in Mexican licensed party goods supplier Granmark for $22 million, deepening its access to a market where it’s opening new stores. Party City also has an option on the remaining 15% of Granmark in three years.

Granmark, which makes party supplies, gift wrapping paper and stationery in Monterrey, Mexico, has a broad portfolio of entertainment licenses from companies including Disney, DreamWorks, Mattel, Hasbro, Nickelodeon and Warner Bros. The move follows Party City reaching a franchise agreement with franchisee Gruopo Oprimax, which opened its first three stores in Mexico last year and can add another 77 there during the next 10 years.

Meanwhile, Party City also agreed to buy 18 franchised locations across North Carolina and South Carolina. That leaves Party City with 184 franchised locations and follows an agreement in January to buy another 18 stores. Party City’s net income in Q4 ended Dec. 31 shrank 6.5% to $85.2 million as revenue slid 4.1% to $749.2 million. Retail sales in owned stores dropped 4% to $743.2 million on a 3% decline in same-store sales.

Contact:

Deborah Belevan, VP Investor Relations,914-784-8324, dbelevan@partycity.com

Executive Changes

John Louie, ex-Mattel, named VP-International at Warner Bros. Consumer Products… Marie-Cécile Girard-Jones, ex-Sesame Workshop, joins CBS Consumer Products as Licensing Director… Laurent Kleitman, ex-Unilever, named President of Coty’s Consumer Beauty business, replacing Eggleston Bracey, who is leaving the company for personal reasons… Cindy Ho, ex-eOne Entertainment, appointed Business Development Dir. for Asia at DHX.