A spate of upcoming film releases will help The Walt Disney Co. (DIS) boost profits from the sale of movie-themed clothes, toys and other products more over the next two years than they did in the fourth quarter that ended Oct. 1, CEO Bob Iger told investors.
"In FY2018 alone we have four new Marvel movies, three animated films from Pixar and Disney Animation and two Star Wars releases including Episode VII which will also benefit our consumer products," Iger said in a call with investors on Thursday, Nov. 1.
Before the earnings call, Disney reported that the company generated profits of $424 million from consumer products in the 2016 fourth quarter, a 5% year-over-year slip from profits of $447 million. Fourth quarter revenue from consumer products fell 17% to $1.3 billion, compared to the previous year's fourth quarter consumer product revenue of $1.5 billion.
The sale of Disney merchandise has been driven in recent quarters by the success of movies such as "Frozen" and "Star Wars Episode VII: The Force Awakens."
"Usually when we talk about the studio, we talk about the studio as it relates to box office and the bottom line for that business but you also have to think about it in terms of how we mine these assets, not just in the U.S. but globally at our parks and in consumer products," Iger said in the company's earnings call.
In the 2016 first quarter, the company reported consumer product profits of $860 million on revenue of $1.9 billion, driven by the sales of Star Wars merchandise after the hit movie was released on Dec. 18, 2015.