This year, DCP continued to solidify direct-to-retail relationships with key retailers.

In the U.S., direct-to-retail agreements were announced with Kmart Corporation and J.C. Penney Company, Inc., as well as 13 retailers across Europe, Canada and Latin America. In 2002, the apparel business will continue to be augmented through additional direct-to-retail agreements with industry leaders.

Disney Consumer Products' direct-to-retail strategy was highlighted by the fall 2001 launch of Disney's "It's A Small World After All" collection. Inspired by children from around the world and based on the it's a small world theme park attraction, the assortment is exclusive to JCPenney.

In 2002, the apparel segment will continue to grow with the debut of a new line of Disney apparel at Kmart.