US: Iconix Q2 profit slumps 28.7%
Iconix Brand Group posted a 28.7% decline in second-quarter net profit today (25 July), despite seeing sales rise.
Net income for the quarter ended 30 June fell to US$32m. Operating income was down 2.5% to $59m, while total revenue, which includes around $5.6m related to the completion of the company's new joint venture in India, climbed 5% to $93.6m.
Selling, general and administrative expenses increased during the period to $34.6m, compared to $31.7m the same period last year.
For the first six months of the year, net income declined 21.4% to $62.9m. Operating income slipped 1.1% to $116.6m. Net sales were up 0.3% to $182.1m.
Neil Cole, chairman and CEO of Iconix Brand Group, said: "We are pleased with our overall performance in the second quarter. Our strategy of building our brands globally is gaining momentum with the launch of our India joint venture with Reliance and our first two direct-to-retail licenses in Europe."
Looking forward, Cole said the company sees continued opportunities to grow its portfolio in the US and around the rest of the world.
"In addition, with our significant free cash flow and strong balance sheet we plan to continue to deliver increased shareholder value through acquisitions and share repurchase," Cole added.
Iconix Brand Group Reports Revenue And Earnings For The Second Quarter 2012
|NEW YORK, July 25, 2012 /PRNewswire/ --
EBITDA, free cash flow, non-GAAP net income and non-GAAP EPS are all non-GAAP metrics and reconciliation tables to the respective GAAP measures are attached to this press release.Neil Cole, Chairman and CEO of Iconix Brand Group, Inc. commented, "We are pleased with our overall performance in the second quarter. Our strategy of building our brands globally is gaining momentum with the launch of our India joint venture with Reliance and our first two direct-to-retail licenses in Europe. Looking ahead, we see continued opportunities to grow the portfolio both in the U.S. and around the world. In addition, with our significant free cash flow and strong balance sheet we plan to continue to deliver increased shareholder value through acquisitions and share repurchase." 2012 Guidance for Iconix Brand Group, Inc.:The Company is reaffirming its full year 2012 revenue guidance of $340 to $350 million, its 2012 non-GAAP diluted EPS guidance of$1.65 to $1.74, its 2012 GAAP diluted EPS guidance of $1.48-$1.57, and its 2012 free cash flow guidance of $174 to $181 million. This guidance relates to the existing portfolio of brands and does not include any additional acquisitions.
See reconciliation tables below for non-GAAP metrics. These non-GAAP metrics may be inconsistent with similar measures presented by other companies and should only be used in conjunction with our results reported according to U.S. GAAP. Any financial measure other than those prepared in accordance with U.S. GAAP should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with U.S. GAAP.
About Iconix Brand Group, Inc.
Iconix Brand Group, Inc. owns, licenses and markets a growing portfolio of consumer brands including: CANDIE'S (R), BONGO (R),BADGLEY MISCHKA (R), JOE BOXER (R), RAMPAGE (R), MUDD (R), MOSSIMO (R), LONDON FOG (R), OCEAN PACIFIC (R), DANSKIN (R), ROCAWEAR (R), CANNON (R), ROYAL VELVET (R), FIELDCREST (R), CHARISMA (R), STARTER (R), WAVERLY (R), ZOO YORK(R), and SHARPER IMAGE (R). In addition, Iconix owns interests in the ARTFUL DODGER (R), ECKO (R), MARC ECKO (R), ED HARDY (R) MATERIAL GIRL (R), PEANUTS (R), and TRUTH OR DARE brands. The Company licenses its brands to a network of leading retailers and manufacturers that touch every major segment of retail distribution from the luxury market to the mass market in both the U.S. and worldwide.
The following tables detail unaudited reconciliations from non-GAAP amounts to U.S. GAAP and include reconciliations related to the adoption of ASC Topic 470 as it relates to accounting for convertible debt.Note: All items in the following reconciliation tables are attributable to Iconix Brand Group, Inc. and exclude results related to non-controlling interests.
SOURCE Iconix Brand Group, Inc.
Original source: http://www.iconixbrand.com/invest_fin_rel.html
Sequential Brands, which owns the William Rast and People's Liberation brands has poached its second former Iconix executive in a month, appointing Gary Klein as CFO. ...
Iconix Brand Group, which licenses fashion and footwear labels like Candie's, Bongo, London Fog and Joe Boxer, has completed the acquisition of UK football brand Umbro from Nike for US$225m....
Sportswear giant Nike is reportedly nearing a deal to sell its footwear brand Cole Haan to private equity firm Apax Partners for US$500m....
Sportswear giant Nike today (5 November) confirmed some redundancies are "likely" following the agreement to sell its Umbro football brand to Iconix Brand Group....
Iconix Brand Group, which licenses fashion and footwear labels like Candie's, Bongo, London Fog and Joe Boxer, has today (1 November) booked an increase in third-quarter net profit despite a fall in s...
- Garment firms set sights on Vietnam amid TPP talks
- Garment manufacturers eye Myanmar outsourcing
- Changes in China cotton policies cause uncertainty
- PSF 2014: No one size fits all in apparel sourcing
- PSF 2014: Shifting focus from cost to consumer
- Wage strike by Cambodia garment workers falls flat
- H&M still committed to higher wages and Bangladesh
- Vietnam Q1 textile and garment exports surge 21.9%
- Alliance inspections more than 50% complete
- Gap to grow China sales to $1bn in three years
- Ethiopia – the emerging textile and clothing industry
- Trade and trade policy: clothing imports, consumer expenditure and trends in five emerging markets: Brazil, Colombia, India, Kazakhstan and Peru, 4th quarter 2013
- Antimicrobial fibres, fabrics and apparel: innovative weapons against infection
- Sustainable Textiles for Apparel: Fact, Fiction and Future Prospects
- Jeans in Italy