Iconix revenue down 17% in 2018, narrows losses
It was a tough year for NYC-based brand management company Iconix Brand Group, as total revenue for the firm plummeted 17 percent during the year 2018.
Iconix’s revenue for the year ended December 31, totaled $187.7 million. The biggest percentage decrease was in the company’s women’s segment where revenues plunged 41 percent to $57.4 million, as a result of the transition of its Danskin, OP and Mossimo direct-to-retail licenses, according to the earning report.
The company’s home segment was also significantly hit with revenue dropping 15 percent to 24.5 million, due primarily to the effect of the Sears bankruptcy, said the company in a statement.
For the full year, the company’s international business was the only segment to post a sales increase, with revenue rising 10 percent to 66.6 million, primarily based on the performance of brands in China, Europe and India, added Iconix.
Likewise, for the fourth quarter of 2018, revenue fell 18 percent to $42.7 million, as compared to $52.3 million in the prior year quarter.
The men's segment revenue performed well in the fourth quarter, increasing 38 percent as compared to the prior year quarter, driven by the Umbro, Ecko and Buffalo brands. However, the men's segment declined 2 percent for 2018, hurt by the transition of the Starter brand from Walmart to Amazon.
Still, CEO Bob Galvin remained optimistic as the firm managed to narrow its losses.
“We have finalized our review of business and operational goals and objectives and we have put our plan into effect. As a result, we have reduced our operational cost structure by approximately $30 million to align with our plan," said Galvin.
Iconix’s net loss for the year was $100.5 million as compared to a loss of $535.3 million for the full year 2017. For the quarter, Iconix posted a net loss of $69.1 million, or $9.75 per share, compared with profits of $24.1 million or $3.97 in the year-ago period.
“We continue to build the pipeline of our future business, as we have signed 83 deals over the last six months for aggregate guaranteed minimum royalties of approximately $45 million through the life of the agreements for the next several years,” Galvin explained.
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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