Iconix Brand second-quarter revenue declines 31%
today Aug 13, 2019
Iconix Brand Group has reported total revenue of $34.4 million for the second-quarter ending June 30, 2019, a 31 per cent decline, compared to $50.2 million last year.
For the six months ending June 30, total revenue of the company was $70.3 million, a 29 per cent decline, compared to $98.8 million in the six months a year prior.
The decline in revenue was principally as a result of the transition of Iconix's Danskin and Mossimo direct to retail licenses in women's segment, said Iconix in a press release.
The revenue for the second quarter was also impacted by the effect of the Sears bankruptcy on the company's Joe Boxer and Bongo brands in women's and the Cannon brand in Home.
The overall revenue for the Cannon and Joe Boxer brands was down year over year.
The company's men's segment revenue decreased 37 per cent in the second quarter of 2019, compared to the prior year quarter primarily from the Buffalo brand.
Its international segment declined 3 per cent in the second quarter, primarily as a result of performance in China.
"Results for the second quarter of 2019 were as expected, as we continue to stabilise the business and our operational cost structure. Our focus on the business and costs helped to improve our EBITDA margin to 59 per cent from 49 per cent in the prior year quarter. We also continue to build the pipeline of our future business, as we have signed 111 deals year to date for aggregate guaranteed minimum royalties of approximately $79 million," said Bob Galvin, CEO of Iconix.
Iconix Brand owns, licenses and markets a portfolio of consumer brands like Joe Boxer and Lee Cooper.
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