Iconix recent acquisitions pump up sales
The Iconix Brand Group calls the results for its first quarter ending March 31 as "historic." The American licensing specialist, owner of brands such as Zoo York, Material Girl and Danskin, posted a rise of 19% in sales, nearly 105 million dollars. Its EBITDA rose from 56.8 to 64.6 million dollars with a margin of approximately 61.5%. Net income increased by 13% for a total of 36.2 million dollars.
However, this spike must be understood in the context of recent acquisitions made by the group. In the last quarter, Iconix added Umbro, the Canadian brand Buffalo and Lee Cooper to its portfolio. "Most of the growth comes from these acquisitions," admitted Neil Cole, CEO and President of the group’s Board of Directors, at the public presentation of these results. "Given the difficult economic environment, cumulative sales of other brands are similar to that of the same period last year." The CEO also noted that in 2013, thanks in part to its acquisitions, it expects 33% of its turnover to come from abroad, compared to 24% in 2012.
The group also has plans for its new brands. While Neil Cole did not dwell much on projects and the network for Lee Cooper, he mentioned that Buffalo would be offering new product categories, such as a girls’ clothing line.
For Umbro, the executive explained that the teams are working to build out Umbro with an eye toward the 2014 World Cup and 2016 Olympic Games in Brazil. Umbro, a soccer sportswear and equipment manufacturer, intends to expand its presence in the U.S. through the Dick's store network. Cole said the move was important "because Dick’s has the on-the-pitch functional product….We are going to do some basic apparel type and other types of distribution which we hope to launch in spring of 2014 along with the World Cup."
Essentially the group is more focused on the international market. It just signed an agreement for the development of Material Girl stores in China in a commercial park of some 600 stores as well as corners, which will open over the next five years. Iconix also intends to develop its joint venture model. The CEO mentioned negotiations with Canada, Australia and Israel.
In 2013, the group is aiming for sales between 425 and 435 million dollars and an EBITDA at 56% of turnover.
Copyright © 2023 FashionNetwork.com All rights reserved.