Iconix Brand Group: Q1 revenues down 26 percent
By Prachi Singh
14 May 2019
For the first quarter of 2019, Iconix Brand Group’s total revenue was 35.9 million dollars, a 26 percent decline as compared to the prior year first quarter. The company said, such decline was expected, principally as a result of the transition of Danskin and Mossimo direct to retail licenses in the women’s segment and effect of the Sears bankruptcy on Joe Boxer and Bongo brands in women’s and the Cannon brand in home.
Commenting on the company’s performance, Bob Galvin, Iconix’s CEO said in a statement: “Results for the first quarter of 2019 were as expected, as we continue to stabilize the business and our operational cost structure. 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 dollars.”
Revenues of the company’s men’s segment increased 10 percent driven by Starter and Buffalo brands. The company added that international segment revenues declined 15 percent as a result of performance of Diamond Icon joint venture, which was higher in the prior year due to sales leading up to the World Cup.
The company added that GAAP net income attributable to Iconix for the first quarter reflects income of 17.9 million dollars compared to income of 27.8 million dollars for the first quarter of 2018. GAAP diluted EPS reflects a loss of 1 cent compared to income of 1.09 dollar for the first quarter of 2018.
Picture:Facebook/Buffalo David Bitton