Alliance Entertainment accelerated the growth rate for collectibles sales in its fiscal Q1 ended September 30, to 87% from the 45% growth rate in the category for its last full fiscal year ended June 30 (see “Alliance Expanding in Collectibles“). Alliance’s collectibles sales were $11.9 million, up from $6.4 million in the year ago quarter, setting up the company to easily surpass its $32 million in the full fiscal year.
Alliance is also benefiting from the growing popularity of physical media among young consumers, with increased sales of physical music and movies as well, leading CEO Jeff Walker to note the similarities between the three categories. “Physical music, movies and collectibles all grew, with collectibles revenue up 87%,” he said in a statement accompanying the earnings announcement. “For a long time, so much of the conversation was about streaming replacing physical formats. But what we’ve seen consistently is that fans who can listen to an album or watch a movie online still want something special they can own and collect.”
Alliance is growing its collectible sales from a small base, aided by the hiring of at least seven former employees of one-time collectibles distribution powerhouse Diamond Comic Distributors.
Overall Alliance Entertainment sales were up10% to $278.8 million, and net income improved to $7.6 million, from $4.9 million in the year ago quarter.
Source: ICV2
