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Figment!
06-20-2007, 09:01 PM
Disney Consumer Products Sales Seen Rising 13%



By Gina Keating
Reuters
6/19/2007

Global retail sales of Walt Disney Co. consumer products are expected to rise 13 percent to a record $26 billion in fiscal 2007 and the company plans to nearly double that figure within seven years, Disney Consumer Product Chairman Andy Mooney told Reuters.

Disney licenses its characters and intellectual property to manufacturers, and receives royalties and other revenue equal to a low double-digit percentage of retail sales.

Disney has more than doubled global retail sales and diversified product lines since Mooney took over in 2000, when 80 percent of sales came from Winnie the Pooh and Mickey Mouse merchandise.

With momentum from successful lines such as Disney Princesses, "Cars" and "Hannah Montana," Mooney said in a recent interview he expects the division to see double-digit annual growth as it heads for $50 billion in global retail sales in five to seven years.

"You have got four independently strong storytelling divisions that have the ability to create new intellectual property that ... could then be exploited by the other divisions," he said. "That is exactly the point that we have reached."

Disney's retail sales have been bolstered in fiscal 2007, which ends on September 30, by rapid growth in its Princess and Fairies lines for girls and by the strong new "Cars" line for boys and Disney Channel lines for tweens (older pre-teenage children), Mooney said.

Disney Princesses, the largest global girls' franchise, is expected to grow 17.6 percent to $4 billion, while the 18- month-old Fairies line, aimed at older girls, is set to hit $800 million in fiscal 2007, Mooney said.
"Princess is a fundamental play pattern that's enduring. That's why we think the $4 billion figure we have is sustainable," he said.

The year-old "Cars" franchise, aimed at young boys, continues to perform strongly and is expected to top $2 billion this fiscal year -- a level Mooney also believes is sustainable.

"We are in uncharted territory (with Cars) because we have never seen this type of phenomenon where in the year post-DVD release we are actually experiencing growth not decline," he said. "We actually think that Cars is going to be our hallmark property for boys."

Merchandise spun off from the Disney Channel's live action shows for tweens, including "Hannah Montana" and "High School Musical," will reach $400 million by the end of the fiscal year, he said.

mttafire
06-20-2007, 11:10 PM
Disney has been seeing ALOT of GREAT financial gains lately..Especially with the Parks and Merchandise. The economy is rolling along and folks are spending quite a bit of money on liesure activities...Disney is getting alot of that business.:thumbsup: IHMO, Disney is a good as ever!:mickey:......If not better. On a side note,
In Ohio two of the most popular "non Disney" parks there is..Cedar Point and Kings Island are also seeing major gains financially. Good news ALL around.

A Foolish Mortal
06-22-2007, 08:51 PM
Geeze... and I thought the park merchandise was expensive already.