Iconix Q1 revenue drops 26%
Following a difficult 2018, NYC-based brand management company Iconix Brand Group continued to see revenue plummet in its first quarter ended March 31, 2019.
Company revenue for the quarter fell 26 percent to $35.9 million, down from $48.5 million reported in the prior year quarter.
Still, the decline was anticipated, due to the transition of its Danskin and Mossimo direct-to-retail licenses in its women's segment, as previously announced. Revenue was also impacted by the effect of the Sears bankruptcy on its Joe Boxer and Bongo brands in its women's category and the Cannon brand in its home division.
Overall, the biggest percentage decrease during the quarter was in the company’s women’s segment, where revenues plunged 50 percent to $8.3 million.
The company’s home segment was also significantly hit with revenue dropping 46 percent to $3.4 million.
Internationally, Iconix sales saw a drop of 15 percent, as a result of the performance of its Diamond Icon joint venture, which was higher in the prior year due to sales leading up to the World Cup.
Offsetting the Iconix's declines, men's segment revenues were solid, climbing 10 percent on the back of its Starter and Buffalo brands.
“Results for the first quarter of 2019 were as expected, as we continue to stabilize the business and our operational cost structure,” explained CEO, Bob Galvin.
“We also continue to build the pipeline of our future business, as we have signed 65 deals year to date for aggregate guaranteed minimum royalties of approximately $40 million.”
The company added that GAAP net income for the first quarter totalled $17.9 million, compared to net income of $27.8 million for the first quarter of 2018. GAAP diluted EPS for the first quarter registered a loss of $0.01, compared to income of $1.09 for the first quarter last year.
Looking ahead, the company expects full-year revenue guidance between $145 million and $160 million for 2019, and adjusted EBITDA guidance of approximately $70 million to $80 million for the year.
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