Inside Licensing News and Notes, Dec. 15, 2017

Mario Batali Licensees Halting Production The fallout from allegations of sexual misconduct against celebrity chef Mario Batali is hitting the licensing industry. Batali licensee Zidian Manufacturing Corp., which makes his pasta sauces that are sold through Target, says it’s halting production of the brand.   Batali also has agreed to “forego any profits that he might receive from the sale of

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Disney-Fox Deal Brings Major Franchises Together

The Walt Disney Co.’s proposed deal to buy 21st Century Fox for $52 billion will bring a broad range of licensed properties under the Disney umbrella from National Geographic Partners to hit TV series such as “The Simpsons” and “Bob’s Burgers” and major film franchises such as Avatar, Planet of the Apes and Ice Age. It also would return the

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Surge in Retailers’ Private Labels a Challenge to Licensing’s Creativity

Every retailer’s holy grail is to carry well-priced, exclusive goods that consumers desire – and that they can’t find anywhere else. It’s a proven formula for building traffic and margins, and one that – in an increasing number of cases – has driven them toward developing and selling more private label lines. For some in licensing, private label has been

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Inside Licensing News and Notes, Dec. 11, 2017

Vera Bradley Ends Licensing in Japan Vera Bradley is ending a licensing agreement with apparel supplier Look Inc. in Japan in mid-2018 as it sharpens its focus on its U.S. business, CEO Rob Wallstrom told analysts. The company signed a five-year agreement with Look Inc. and Mitsubishi Corporation Fashion Co. in 2014, the latter to handle distribution of the brand

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Mattel Bracing for Cost-Cutting through 2019

Mattel is bracing for $200 million in severance and restructuring costs through 2019 as it struggles with retailers tightening inventories and “challenges” within its Toy Box Division and “certain underperforming brands,” the company said in a SEC filing. In filing Monday seeking to raise an additional $1 billion in debt, Mattel said its gross sales for the current year ending

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Iconix Taking $500-$750 Million Charge Against Q3 Earnings

Iconix Brand Group is taking a $500-$750 million charge in Q3 ended Sept. 30, largely tied to it womenswear business, which took a hit when Walmart ended a 10-year pact for the Danskin and Danskin Now brands (Inside Licensing Oct. 31). The Danskin agreement with Walmart generated about $15.5 million in annual revenue for Iconix. The company also is faced

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Cherokee Q3 Loss Triples

Cherokee Global Brands’ net loss nearly tripled to $2.5 million in Q3 ended Oct. 28 as its licensing program for the Cherokee brand expanded “slower’ than expected in North America, CEO Henry Stupp told analysts. Revenue in the quarter increased 70% to $11 million with the purchase earlier this year of footwear company Hi-Tec and its Magnum and Interceptor brands.

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Inside Licensing News and Notes, Dec. 4, 2017

Five Below Boosts Year-End Sales Forecast Five Below boosted its forecast revenue 2.2% to $1.276 billion for the fiscal year ending in January, owing to strong sales of licensed goods and trend products such as spinners and mermaid blankets, CEO Joel Anderson told analysts. The projected full-year same-store sales increase rose to 5.7-6.5% from 3.5-4.5%, while the earnings range was

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Inside Licensing News and Notes, Dec. 1, 2017

Delta Apparel’s Q4 Profit Declines Delta Apparel’s profit edged down slightly to $2.1 million in Q4 ended Sept 30 as revenue dropped 19.9% to $91.3 million, due partly to its sale of Junk Food earlier this year. Junk Food, which sells apparel under a variety of licensed entertainment brands, generated $17 million in revenue in Q4 a year ago. Delta,

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Inside Licensing News and Notes, November 28, 2017

Rovio Entertainment’s Consumer Products Revenue Declines Rovio Entertainment’s consumer product licensing revenue dropped 40% to €1.9 million in Q3 ended Sept. 30, a decline driven by the ending of many agreements tied to the 2016 Angry Birds film, Rovio said in releasing its first earnings report since its IPO in September. Overall, the licensing segment’s earnings before interest, taxes, depreciation

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