J.C. Penney Readying Fanatics In-Store Shops

J.C. Penney is readying Fanatics in-store shops for 700 locations this summer as it moves to expand its activewear apparel business, CEO Marvin Ellison told analysts. While Penney has deployed its private label Xersion and Authentic Brands Group’s Tapout brand in activewear in the past, the Fanatics assortment will help the chain catch up with current trends, Ellison said.

For Fanatics, the shop-in-shops will be an extension of the e-commerce Sports Fan Shop it has run for Penney since 2014, featuring professional and college-related sports apparel. Penney also will be “leaning into” Nike, Addidas, Puma and Xersion brands as seeks increase sales women’s activewear, company executives said.

Meanwhile, Penney’s net loss in Q1 ended May 5 narrowed to $78 million from $187 million a year earlier as revenue fell 4.1% to $2.67 billion, due partly to having closed 141 stores during the past year. Penney’s website also was hit with supply chain issues that cut into Q1 sales, and the chain used promotional discounts to sell off excess holiday-related inventory, Ellison said. Same-store sales declined 0.2%, against a 3.5% decrease a year earlier.

Contacts:

J.C. Penney, Jeffrey Davis, Chief Financial Officer, 972-431-1000

Hedge Fund Pushing GameStop for Strategic Review

Hedge fund Tiger Management is urging GameStop to conduct a “strategic review” of its business following recent management changes. While the firm said in a letter to GameStop it will remain a “passive shareholder” with no intention of becoming an activist investor, the death of former CEO Paul Raines in March and the departure of his replacement (Inside Licensing May 11), Michael Mauler after just three months has created a “crisis of confidence” in the chain. Chief Operating Officer Tony Bartel and EVP Michael Hogan also left in February. The recent departures are an “unprecedented opportunity for the board to launch a strategic review and revive shareholder confidence in the sustainability of the GameStop business model,” Tiger Management stated. It also asked GameStop to halt acquisitions that have historically destroyed shareholder value and develop a turnaround plan that can be “communicated to shareholders.” If a turnaround doesn’t development, Tiger said it will sell its shares.

“GameStop has a long track record of welcoming communication from all of its shareholders and values constructive input that may help increase shareholder value,” the company said in a statement.

Contact:

Cathy Smith, Chief Financial Officer, 817-824-2000, cathysmith@gamestop.com

9 Story Media Forms Consumer Products Group

9 Story Media launches 9 Story Brands consumer products group as it moves to build on its acquisition of the Out of Blue production studio.

The new business unit, which will be headed by 9 Story’s Kristin Lecour and former Out of the Blue executive Kyra Halperin as Co-VPs for consumer products, will focus on outbound licensing for Colorforms, “Peg + Cat,” “Daniel Tiger’s Neighborhood,” “Super Why!”, “Luo Bao Bei,” “Wild Kratts” and “Nature Cat.” Lecour will handle international markets, while Halperin is responsible for the U.S.

Nine Story will take a two-pronged approach with licensing for Colorforms, which is being supported by a 13-episode “Charlie’s Colorforms City” series on Netflix in March 2019, Lecour told us. It also is developing a “vintage” licensing program that will focus on apparel and draw from the classic Colorforms. Kahoots Toys will continue as the licensee for the classic Colorforms.

Nine Story Brands also will handle licensing for “Luna Around the World,” which it is co-producing with PBS and will be released in the U.S. in November. The first licensed toys tied to it are planned to launch in 2020, Lecour said.

Contact:

Nine Story Media, Kristin Lecour, VP Consumer Products, 416- 530-9900kristin.lecour@9story.com

‘Moon and Me’ Readies U.S. Launch

Bento Box Entertainment’s “Moon and Me” pre-school children’s series will launch in the U.S. on Universal Kids (formerly Sprout) late this year with toys from global licensee Hasbro, says Andrew Kerr of Bento’s Sutikki division. Scholastic also has a license for publishing. Hasbro and Scholastic will back the series’ UK release on the BBC’s CBeebies this fall. A broader licensing program for “Moon and Me” will be introduced in 2019 with apparel. Moon and Me is a 50-episode, 22-minute series that features two characters from different worlds. UYoung, which will handle Moon and Me’s distribution and licensing in China, will launch its licensing program in June for the series’ planned release there in 2019.

Contact:

Sutikki, Andrew Kerr, Partner, 647-389-0180

DHX Media Sharpens Focus on Fewer Brands

DHX Media is sharpening its focus on fewer brands as it seeks to bolster the return on its investment, Executive Chairman Michael Donovan told analysts. DHX has generally produced 12-14 shows at a given time, but the company will now target “leading” brands, including Mega Man, Peanuts, Strawberry Shortcake, Caillou, Fireman Sam and Polly Pockets. The latter two stem from the joint venture it formed with Mattel in 2016, which produced $5.32 million in content revenue and consumer products royalties for DHX in Q3 ended March 31. Previously there were “a lot of noodles on the wall, but we have gone through a review process and realize that our opportunities are in our leading brands to leverage our considerable production capacity and focus on cash flow going forward,” Donovan said.

DHX’s online steaming service WildBrain also will be critical to “building brands moving forward” given its ability to produce “lower-cost” content, DHX President Josh Scherba said. WildBrain’s Q3 revenue rose 71% to $14.3 million. Among DHX’s brands that have fallen short is Teletubbies, which it relaunched in 2016. “We always want to focus on the opportunities for our biggest and most well-known brands, but it doesn’t always work out,” COO Aaron Ames said. “That’s the reality.” Meanwhile, DHX’s revenue from is CPLG agency plunged 57% to $2.1 million as revenue from representing Despicable Me and Minions films, which had a “slightly positive impact” of Q3 earnings in fiscal 2017, have “now fallen off,” DHX said.

Contact:

DHX Media, Doug Lamb, Chief Financial Officer, 902-423-0260, doug.lamb@dhxmedia.com

Scholastic Entertainment Reviving Clifford the Big Red Dog TV Series

Scholastic Entertainment is reviving the “Clifford the Big Red Dog” TV series with plans to release it on Amazon Prime and PBS Kids in fall 2019, along with a licensing program. A stylebook for the 39-episode series, which has started production, will be available this fall, a Scholastic spokeswoman said. Scholastic produced the first 104-episode TV series that aired on PBS from September 2000-February 2003 and also created a videocassette collection that was released in 1988. The book series received film treatment from Warner Bros. (Clifford the Really Big Movie) in 2004 and a new version was in development at Universal for several years before the option lapsed in 2016 and was picked up by Paramount.

Contact:

Scholastic, Caitlin Friedman, VP General Mgr., cfriedman@scholastic.com

Executives:

Janice Ross, ex-American Greetings, named SVP of Licensing and Business Development at Lisa Frank Inc.… Megan Buettner, ex-American Greetings, joins Tetris as Director of Marketing and Licensing Operations… Nancy Samani, ex-Brand Central, named Licensing Director at The Jel Sert Co… Jia Salindong-Du, ex-Proctor & Gamble, named Country Manager for the Philippines at Turner Asia Pacific, replacing Nicole Schneiderjohn, who left to start her own business… Sarah Casey, ex-Amazon, named Senior Director of Marketplaces at Trevco, new position… Patrick O’Brien, ex-Electronic Arts, joins mobile games start-up N3twork as Business Affairs and Corporate Development Dir… Hannah Stevens, ex-Coolabi, named Retail and Brand Manager at agency The Point 1888.

Contacts:

The Jel Sert Co., Nancy Samani, Licensing Dir., 630-818-6402, nsamani@jelsert.com

Lisa Frank Inc., Janice Ross, SVP Licensing and Business Develop ment,310–804-4908,jross@lisafrank.com

N3twork, Patrick O’Brien, Business Affairs and Corporate Development Dir., patrickjobrien2@gmail.com

The Point 1888. Hannah Stevens, Retail and Brand Mgr., 44 1277 410 165, Hannah.stevens@thepoint1888.com

Tetris, Megan Buettner, Dir. Marketing and Licensing Operations, 216-406-8710

Trevco, Sarah Casey, Senior Dir. Marketplaces, 248-526-1400

Turner Asia Pacific, Jia Salindong-Du, Country Mgr. Philippines, jia.salindongdu@turner.com