The 313 Disney Stores purchased by Children's Place in 2004 (see 'Children's Place Finalizing Disney Stores Purchase') are once again making money for Disney due to a licensing agreement that kicked in at the beginning of the month.  After a royalty holiday for the initial period after the acquisition of the stores, Children's Place will now pay a percentage of sales to Disney.

 

According to retail analysts cited by the Los Angeles Times, Disney stores sales are up (15% in same stores year over year for the first 11 months of 2006) because they now have a better mix of prices, direct purchasing from Asia, and more responsive inventory management (i.e. stocking what is selling vs. what the most recent Disney marketing push) than they had under Disney's direct control.