US: Iconix lowers full-year forecast as Q1 profits fall
- Net profit declined 11.3% to $27.5m
- Revenue fell 4.2% to $92.3m
Iconix Brand Group has lowered its full-year forecast after recording a decline in first-quarter net income due to "continued softness" in its men's wear brands, and a delay in government approval for its joint venture in India.
The company has revised its revenue forecast for the full year to US$340-350m, down from $370-385m. Diluted EPS is now seen be in the range of $1.48-1.57, dropping from $1.62-1.69.
Had the joint venture been approved in the first-quarter, as expected, it would have contributed US$5-6m in revenue, Iconix said. But it emphasised this is purely a timing issue, and expects the deal to close in the second quarter.
The comments came as the company, which owns brands including Candie's, Danskin, Ecko and Waverly, reported an 11.3% drop in net profit to US$27.5m. Revenue declined 4.2% to $92.3m in the three months to 31 March.
"With the majority of our portfolio performing well in the US and our continued expansion into new geographies, we believe our company remains strong and is well positioned for growth in 2013 and beyond," said chairman and CEO Neil Cole.
"Although we see some challenges in the short term, we remain positive on the long-term."
Iconix Brand Group posted a 28.7% decline in seond-quarter net profit today (25 July), despite seeing sales rise....
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