Iconix reports a 2% decline in revenue second quarter 2016 revenue
today Aug 7, 2016
Licensing revenue for the second quarter was relatively flat at $95.7 million, a 2% decline from the second quarter of 2015. The quarter of 2016 benefited from a $0.9 million impact from foreign currency exchange rates primarily related to the Yen.
Total SG&A expenses increased 3% to $47.1 million in the second quarter of 2016 as compared to $45.8 million in the second quarter of 2015. The increase was primarily due to higher expenses in the entertainment business.
The second quarter SG&A also included approximately $1.9 million of expenses to continue correspondence with the staff of the SEC (Securities and Exchange Commission), the SEC investigation and the previously reported class action and derivative litigations. These charges are excluded from the company's non-GAAP
GAAP net income was approximately $28.4 million compared, a 16% decline from the second quarter 2015. GAAP diluted income was about $0.23 compared to $0.28 in the same quarter of 2015.
Operating income in the second quarter of 2016 was $47.8 million, an 8% decline from the second quarter of 2015 at $51.8 million, due primarily to a net loss on sale of trademarks and the absence of income from Bagley Mischka, which was sold in the first quarter of 2016.
John Haugh, CEO of Iconix, stated, "I am pleased that for the second quarter, our company has delivered solid results. Our primary goal is to position ourselves to achieve growth while at the same time improving the balance sheet, and we are making progress on both of those fronts."
Iconix Brand Group, Inc. owns, licenses and markets a portfolio of consumer brands including Candie's, Bongo, Joe Boxer, Rampage, Mudd, Mossimo, London Fog, Ocean Pacific and Danskin, among others. The company licenses its brands to leading retailers and manufacturers in every major segment of retail distribution worldwide. Iconix manages its brands with its in-house business development, merchandising, advertising and public relations departments.
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