US: Iconix takes control of Zoo York as Q2 profit soars
- Q2 profit soars 69% to $41.5m
- Revenues jumped 17% to $89.3m
- Invests $18m to take control of Zoo York
Iconix Brand Group Inc, which licenses fashion and footwear labels like Candie's, Bongo, London Fog and Joe Boxer, has booked a 69% jump in second quarter profit, and says it is taking full ownership of the Zoo York brand.
"We are pleased to report that our company achieved record results for the second quarter both on the top and bottom line," said chairman and CEO Neil Cole.
"As our brands gain momentum both domestically and internationally, we continue to demonstrate the power of our business model. Looking ahead, we see many growth opportunities for our portfolio and with our current capital structure we are well positioned to continue to execute on our acquisition strategy."
Net income in the quarter soared to $41.5m or $0.55 per share, from $24.5m or $0.33 per share a year ago. Total revenues jumped 17% to $89.3m.
Looking ahead, the company reaffirmed its full year revenue guidance of $355-$365m.
It also said it is spending $18m to increase its stake in the Zoo York brand from 51% to 100%.
Since taking control of the brand in late 2009, the company partnered with Li & Fung for the core sportswear business and substantially expanded Zoo York's distribution into large scale department stores including JC Penney and Kohl's.
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