Erstwhile Diamond Comic Distributors acquirer Alliance Entertainment grew collectible sales 31.9% in their most recent quarter ended September 30. While a dramatic increase, sales are relatively modest; they grew to $6.4 million from $4.8 million in the year ago quarter. That’s a relatively small portion of the company’s $254 million in sales in the quarter, up 11% from the year-ago quarter. Alliance had a profitable quarter, with $4.88 million in net income, up from $397,000 in the year-ago quarter.
Management pointed to the acquisition of collectibles company Handmade by Robots as one contributor to the growth. Alliance recently added Master Replicas to Weta Workshop as a second collectibles line on which the company has a North American exclusive distribution relationship (see “Alliance Announces Two“).
Alliance Entertainment was declared the successful bidder for all of Diamond Comic Distributors’ assets, including game, comic, and merch divisions, but the agreement was terminated when Alliance discovered that Diamond did not have an agreement to continue to sell Wizards of the Coast products. Alliance sued Diamond; the case is still in progress (see “Alliance Entertainment Sues Diamond“).
After the purchase fell apart, Alliance took steps to grow its business in Diamond’s categories on its own, hiring seven former Diamond employees, some senior (see “Alliance Hires Seven“). Ad Populum company Sparkle Pop LLC, which acquired Diamond’s comic and merch assets, sued Alliance; the case is still in progress (see “Amended Complaint“).
Alliance recently mailed a glossy color catalog of collectibles and games (pictured here) to retailers, continuing its push into the category.
Source: ICv2
