Blockbuster 3Q Loss Widens, Plans Cuts
Dallas, Blockbuster Inc.’s third-quarter loss widened as it lost a half million online customers and absorbed costs for layoffs and store closings.
Blockbuster reported a quarterly loss of $37.8 million compared with a loss of $27.5 million a year earlier. Revenue fell 5% to $1.24 billion, below analysts’ forecast of $1.28 billion.
Blockbuster has spent heavily in the last couple years to build up its online business and was narrowing the gap in customers with industry pioneer Netflix Inc. But over the summer, the number of Blockbuster online subscribers fell to 3.1 million from 3.6 million.
Blockbuster aims to cut annual overhead costs by about $45 million. The company cut 400 jobs in September and closed more than 500 stores in the third quarter—about 7,800 stores remain worldwide. Blockbuster also trimmed advertising spending in the third quarter to $27.5 million from $33 million a year ago.
For the first nine months of the year, Blockbuster lost $125 million after preferred stock dividends on $2.44 billion in revenue, compared with a profit of $33.4 million on revenue of $2.51 billion last year.
Wal-Mart reveals holiday deals
BENTONVILLE, Ark. Wal-Mart is kicking off the holiday shopping season early. The company announced today that it plans to reveal its holiday deals online Thursday, with items becoming available Friday morning as the merchant officially opens special Christmas shops.
“Our customers can fulfill all their holiday needs at Wal-Mart and not only save money, but buy gifts they can be proud to give,” said John Fleming, chief merchandising officer Wal-Mart Stores U.S.
Holiday savings is the focus of the Wal-Mart Christmas marketing campaign that breaks this week. Broadcast and print ads will show that when shopping at Wal-Mart, “The more you save, the more Christmas you can give.”
Hanesbrands, Disney announce 10-year deal
WINSTON-SALEM, N.C. Hanesbrands and The Walt Disney Company today announced a 10-year strategic alliance that includes product co-branding, attraction sponsorships and other brand visibility and signage at Walt Disney Parks and Resorts properties.
Under the alliance, Hanesbrands’ Hanes and Champion brands will have sponsorship rights to popular Disney attractions. According to Hanesbrands ceo Richard Noll, Hanes will be the presenting sponsor of the Rock ‘n’ Roller Coaster Starring Aerosmith. Hanes will also have a customizable apparel venue in Downtown Disney at Walt Disney World Resort that will enable guests to design and personalize their own custom T-shirts and other items. Champion will gain the naming rights for the stadium at Disney’s Wide World of Sports Complex, the nation’s premier amateur sports venue. The alliance also includes in-store promotional and brand building opportunities at ESPN Zone restaurants and stores located in Anaheim, Atlanta, Baltimore, Chicago, Denver, Las Vegas, New York City and Washington, D.C.
“This alliance is a key component of our marketing programs to drive long-term growth and is part of our aggressive approach to building and investing behind our Hanes and Champion brands,” said Noll. “Our alliance with Walt Disney Parks & Resorts, truly one of the world’s greatest brands, is a perfect fit to maximize the brand strength and equity of both organizations. In addition to becoming key parts of the consumer experience at Walt Disney Parks and Resorts properties worldwide, Hanes and Champion will execute consumer marketing and promotional outreach in the retail apparel marketplace.”
The partnership gives Hanesbrands apparel lines category exclusivity for select apparel at Disneyland Resort in Anaheim, Calif., Walt Disney World Resort and Disney’s Wide World of Sports Complex Stadium, both in Lake Buena Vista, Fla., and all eight ESPN Zone stores across the country. Much of the apparel will be co-labeled, including Disneyland Resort by Hanes, Walt Disney World by Hanes, Disney’s Wide World of Sports Complex by Champion and ESPN Zone by Champion. Basic apparel, under the terms of the agreement, is defined as T-shirts and tanks and fleece sweatshirts, sweatpants, hoodies and other family fleece, including infant and toddler items.