• Q3 net income increases 23%
  • Company to buy 51% of Ecko
  • Nine-month net income increased 16%

 

Iconix Brand Group saw its net income increase 23% during the third quarter, to approximately $22.6m, as compared to $18.3m in the prior year quarter, thanks to growing revenues.

The company, which this morning (27 October) agreed to buy 51% of the Ecko portfolio of brands, said revenue for the third quarter of 2009 was approximately $59.4m, an 8% increase as compared to the third quarter of 2008.

Third quarter 2009 revenue includes a gain of $3.7m related to a transaction involving the sale of the Joe Boxer trademark in Canada.

Revenue for the nine months was approximately $166.3m, a 2% increase as compared to the prior year period, while net income increased 16% to approximately $61.5m during the first three quarters.

Neil Cole, chairman and CEO of Iconix Brand Group, said: "I believe our ability to achieve positive organic growth and record earnings despite facing some unforeseen challenges within the quarter speaks to the strength of our business model."

The company is reiterated recently revised revenue guidance of $215-$220m and full year 2009 non-GAAP diluted EPS of $1.17-$1.22 and GAAP diluted EPS of $1.06-$1.11.

However, this guidance relates to the existing portfolio of brands only and does not include the Ecko acquisition, as the timing of the close is uncertain.

The company also issued 2010 revenue guidance of $260-$270m. This includes the assumption that the Ecko acquisition will close in the fourth quarter of 2009.

Click here to view the company's full third quarter earnings statement.