PVH Looks To Buy Back Some Licenses

As part of a sharpened focus on its Calvin Klein and Tommy Hilfiger brands, PVH Corp. is weighing buying back some global licenses as they expire, CEO Emanuel Cherico told analysts.

“There continue to be some license buy backs that we would be very excited to be in,” said Cherico without disclosing details. “You will see more of these as we move forward” during the next 6-9 months, Cherico said. PVH’s royalty revenue in Q4 ended Jan. 29 increased less than 1% to $79.7 million, reaching $320.6 million for the year.

The quarter included $11 million in costs tied to PVH’s buying back the license for Tommy Hilfiger tailored clothing from Marcroft Clothes, PVH said. The agreement, originally set to expire in December 2022, now ends Dec. 31. Peerless Clothing is the new licensee effective Jan. 1.

Contact: PVH Corp., Michael Schaffer, Chief Financial Officer, 212 381-3500

Disney Extends Iger Contract

Disney extended CEO Robert Iger’s contract by a year to July 2019. Iger, who has been Disney’s CEO for 11 years, previously said he planned to retire in June 2018. But reports cropped up earlier this year that Iger’s departure might be delayed a third time as Disney searched for a successor. Former Disney executive Tom Staggs, viewed as potentially replacing Iger, left the company last year.

Five Bellow Planning to Open 100 Stores this Year

Five Bellow plans to open 100 stores this year, up from 85 in 2016 and including its first nine locations in California, CEO Joel Anderson told analysts. The stores in the Los Angeles area will open in April and Five Below expects to expand into San Diego in 2018. Over time, Five Below will have a “couple hundred” stores in California, he said. The company’s long-term target is to have 2,000 U.S. locations; 622 are expected to be in place by year-end.

Five Bellow’s net income for the quarter ended Jan 28 rose 15.6% to $49.7 million as revenue jumped 18.9% to $388.1 million. Same-store sales rose 1% in Q4, down from a 3.6% increase a year earlier. The retailer launched an e-commerce business last August, but doesn’t expect it to have a “material impact” on 2017 earnings, Anderson said. Five Below forecast a 21% revenue increase this year to $1.21 billion, and projects 20% annual revenue gains through 2020.

Contact: Five Below, Michael Romanko, EVP Merchandising, 215-546-7909

Mitchell & Ness to Complete Transition to New Owner May 1

Mitchell & Ness expects to complete its transition to new owner Juggernaut Capital (which bought it from Adidas) by May 1, having spent nearly a year negotiating new retro apparel licensing contracts for Major League Baseball, National Basketball Association, National Hockey League and National Football League, says Mitchell & Ness’ Joanne Graham.

“All the league contracts have been turned over and that is part of what took so long,” says Graham. “[Juggernaut] wanted to make sure we had all the rights because they weren’t going to buy us unless we did.” In separating from Adidas, Mitchell & Ness retained the NBA license for Swingman vintage apparel, including items such as Michael Jordan’s 1989 all-star jersey. Mitchell & Ness also has hired about 20 employees as it takes over back-office jobs that Adidas had handled since acquiring the company in 2007. Among the new ventures being considered is vintage golf and tennis apparel, including a potential tie-in with the U.S. Open in September, says Graham.

Contact: Mitchell & Ness, Joanne Graham, Team Sales Mgr., 267-765-0611, graham@mitchellandness.com

DHX Media Strikes Licensing Agreement for Location-Based Entertainment

DHX Media strikes a licensing agreement with Paragon Creative that will bring the Teletubbies, In the Night Garden and Twirlywoos characters into licensed indoor play areas in the UK for the first time, says a company spokeswoman. Paragon will design and manufacture play areas such as a Teletubbies Home Dome, but partner with another company to operate them, says the spokeswoman. The designs will be modular so that one or all three properties can be installed in venues ranging from theme parks to shopping malls.

Contact: DHX Media, Tom Roe, Commercial Dir., 902-423-0260, tom.roe@dhxmedia.com