Iconix narrows loss in fourth quarter
Iconix Brand Group, Inc., the owner of brands including Umbro and Lee Cooper reported a Q4 loss of $14.1 million, or $1.06 per diluted share, on Wednesday, a significant improvement from a loss of $93.0 million, or $7.94 per diluted share, in the prior-year period.
In the fourth quarter ended December 31, 2020, the New York-based brand management company achieved total revenue of $33.9 million, down 22% from $43.2 million in the same period in the previous year. This decline was primarily due to negative economic impacts of the Covid-19 pandemic.
In the company’s women’s segment, revenues fell 21% year over year, reflecting a decrease in licensing revenue from the Mudd and London Fog brands, which was partially offset by increases at Danskin. The men’s segment saw a 35% decline, mainly due to decreases in licensing revenues at Buffalo and Ecko Unltd, partially offset by strength at Umbro.
The group’s home segment, however, saw an improvement of 62% in its revenues, driven by the performance of the Charisma and Cannon brands.
Revenues in Iconix’s international segment fell 30% in the quarter, as they were dragged down by decreases in Latin America and Europe.
For the full fiscal year 2020, the company’s revenue totaled $108.6 million, reflecting a 27% decline, compared to $149.0 million in 2019.
Annual net loss was $7.3 million, or $0.60 per diluted share, compared to a loss of $109.5 million, or $10.37 per diluted share, in the previous year.
“While we are hopeful that the pandemic will subside in 2021, we will continue to address the many pandemic-related challenges we face between now and then, and, at the same time, continue to focus on realizing the opportunity that exists for our brands through focusing on building our pipeline of future business,” said Iconix CEO Bob Galvin in a release.
Having sold its Starter China and Umbro China businesses in 2020, Iconix has also completed the sale of its Lee Cooper China business since the end of the year. The transaction resulted in net proceeds of $15.8 million, a portion of which the company used to repay $11.8 million of its senior secured term loan.
Due to the ongoing uncertainty surrounding the Covid-19 pandemic, Iconix did not provide financial outlook for fiscal 2021.
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