Disney Consumer Products Poised for Record Growth at Retail

Fiscal Sales Of Licensed Disney Merchandise Expected To Cross $30 Billion; Tween Franchises Expected To Break $2 Billion Mark

Licensing International Expo 2008

NEW YORK--(BUSINESS WIRE)--Retail sales of licensed Disney merchandise by Disney and its licensees are currently on track to exceed $30 Billion in global retail sales in fiscal 2008 (FY08), a record for Disney products, which in 2007 more than doubled retail sales from $13 billion to $27 billion in just five years; it was announced today by Disney Consumer Products (DCP) Chairman Andy Mooney at the International Licensing Expo in New York City.
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“It’s the Disney difference that accounts for this unprecedented growth fueled by unmatched content and rich franchises nurtured across The Walt Disney Company,” said Mr. Mooney. “In just five years, retail sales of Disney products have doubled and we have diversified our portfolio of brands with smash hits like High School Musical, evergreens like Disney Princess and expanding franchises in Disney•Pixar’s Cars and Disney Fairies. Our product offerings now reach all ages. Simply put, there is no better time to be aligned with Disney.”
DCP expects retail sales of Disney merchandise to grow 12% over the prior year as it continues to command the licensing industry as the world’s top licensor ranked by the International Licensing Industry Merchandiser’s Association (LIMA). At the cornerstone of this global growth lies DCP’s strength in deepening diversified retail distribution, broadening and refining consumer segments and bringing innovative products to market. Disney products have also reached significant milestones across many franchises.
Disney Tween Franchises Expected To Reach $2.7 Billion Mark
Retail sales of DCP’s tween products have mushroomed from $400 Million in 2007 and are expected to reach an astounding $2.7 billion for High School Musical and Hannah Montana respectively in FY08. Both franchises boast unique merchandise programs at leading mass retailers around the world. With the upcoming theatrical release of High School Musical 3: Senior Year, a fourth title in development, and Hannah Montana: The Movie as well as the fan favorite series on Disney Channel, DCP’s tween retail business is poised for exponential growth. Additionally, new programming from Disney Channel such as Camp Rock and JONAS (starring Jonas Brothers)are expected to further licensing opportunities in this coveted demographic segment.
The Fairy Tale Continues for Disney Girls Franchises
With combined global retail sales projected to reach the $5 billion mark, DCP’s girls franchises, Disney Princess and Disney Fairies, are supported by companywide synergy and creative merchandise assortments that keep them alive year round on retail shelves worldwide. The return of favorite fairytales and the release of new ones provide an ongoing basis for the success of these franchises– from the Platinum Edition DVD release of Sleeping Beauty this fall and the theatrical release of Walt Disney Studios The Princess and the Frog in 2009, to Rapunzel in 2010 and Disney•Pixar’s The Bear and the Bow in 2011. An enhanced DisneyPrincess.com Web site will soon immerse girls in new interactive fairytale experiences.
The Disney Fairies franchise will take flight with four Disney Video Premiere releases beginning with Tinker Bell this fall under the helm of chief creative officer, John Lasseter, and Walt Disney Toon Studios and one in each of the following three years. The popularity of this franchise continues to explode with more than 385 books published worldwide and nearly 6 million unique fairy avatars created at DisneyFairies.com. Later this year, Disney Fairies virtual world, Pixie Hollow (www.pixiehollow.com), will launch and enable girls to make their fairy avatars fly and interact with other fairy friends online. The excitement will continue with the first Disney Fairies Nintendo DS title releasing this fall, Disney Fairies: Tinker Bell.
Disney·Pixar’s Cars Nears the $2.5 Billion Finish Line
Playing with cars for boys is a timeless and enduring play pattern just as fantasy role-play and dress-up is for girls with Disney Princess. Add to that powerful storytelling and timeless characters and it’s no wonder why Disney•Pixar’s Cars has become among the fastest growing franchises on track to generate a projected $2.5 billion in global retail sales of licensed merchandise in FY08 or $5 billion in sales since its box office debut. The theatrical release of Cars 2 from Disney•Pixar in Summer 2012 will further extend the vitality of this franchise as it coincides with the grand opening of “Cars Land” – part of the transformation of Disney’s California Adventure. Coming next year, boys will have a chance to create their own car avatar and rev up their engines in a new immersive virtual world featuring Lightning McQueen on Disney.com and a host of other characters from the film.
Preschool Franchises Primed for Growth
DCP will continue to grow the preschool category with new product lines inspired by the adventures of Little Einsteins, the imagination of Mickey Mouse Clubhouse, the problem-solving skills of Handy Manny and the friendships made in My Friends Tigger & Pooh. Backed by the tremendous success of these Disney Channel hit preschool shows on Playhouse Disney, DCP will leverage its recent Disney Stores acquisition to further expand its connection with parents and kids alike.
About Disney Consumer Products
Disney Consumer Products and affiliates (DCP) is the business segment of The Walt Disney Company (NYSEIS) that extends the Disney brand to merchandise ranging from apparel, toys, home décor and books and magazines to foods and beverages, stationery, electronics and fine art. This is accomplished through DCP's various lines of business which include: Disney Toys, Disney Apparel, Accessories & Footwear, Disney Food, Health & Beauty, Disney Home and Disney Stationery. Other businesses involved in Disney's consumer products sales are Disney Publishing Worldwide, the world's largest publisher of children's books and magazines, and www.disneyshopping.com, the company's official shopping portal. The Disney Stores retail chain, which debuted in 1987, is owned and operated by Disney in North America and Europe. The Disney Stores chain in Japan is operated under a license agreement with Disney. For more information, please visit www.disneyconsumerproducts.com.
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