Disney to make store closures

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Walt Disney Co warned this week that it is seeking to close between 100 to 200 of its retail Disney stores and it expects its first-quarter results will be hurt by the September 11 terrorist attacks, coupled with the already weak US economy.

Disney announced that operating income for the first quarter "could be somewhat less than half that of the strong first quarter results of the prior year," with the impact likely to be most significant in its parks and resorts sector.

The company said it expects soft retail sales to affect its consumer products business. Parks and resorts operations are also likely to be affected by the "significant disruption in air travel and tourism and further declines in consumer confidence caused by the events of September 11, especially as compared to the record setting first quarter the segment achieved in the prior year."

Chairman and chief executive, Michael D Eisner, said in the company's statement."Recent events make this a particularly challenging and somewhat anomalous time for our company."

For the fourth quarter ended 30 September, Disney Co's net income was down 78% to $53m compared with a year earlier. Revenue fell 5% to $5.81bn.