Iconix sales fall 15% in first quarter
Iconix Brands Group, Inc., the owner of brands including Umbro and Lee Cooper, announced revenue of $23.6 million for the first quarter ended March 31, 2021, on Thursday, representing a 15% decline compared to $28.0 million in the prior-year period.
This decrease was driven by a 41% drop in the company’s women’s segment, which saw its quarterly revenues fall to $3.8 million, compared to $6.5 million in the same period in the previous year. The trend was mostly due to decreases in licensing revenues at the group’s Mudd, Candies and Joe Boxer brands, which were partially offset by progress in the Danskin brand.
Iconix’s men’s segment also posted a year-over-year decline of 17% in its revenues, which totaled $5.6 million, while sales in the group’s home segment slipped 22% to $2.5 million. The company’s international segment was the only one to see an improvement in the quarter, posting a 2% rise in its revenue, which came to $11.8 million.
Despite the overall decline in its revenue, Iconix did see an improvement in its bottom line in Q1. Net income at the company was $4.2 million, or $0.26 per diluted share, compared to a net loss of $21.8 million, or $1.89 per diluted share, in the prior-year period.
This progress was largely a reflection of Iconix’s sale of its Lee Cooper trademark in China during the quarter, which resulted in a gain of $15.0 million for the company. The group was also able to achieve a 24% year-over-year reduction in its selling, general and administrative expenses, which were $13.1 million, compared to $17.2 million in Q1 2020.
“While we and our licensees continue to deal with many pandemic-related challenges, we have continued to focus on realizing the opportunity that exists for our brands through building our pipeline of future business,” said Iconix CEO Bob Galvin in a release, outlining some of the New York-based brand management company’s plans for the future.
“Year to date, we have signed 93 license agreements representing $47 million of aggregate minimum royalties over the life of these contracts. This represents a 127% increase in the numbers of deals signed versus last year to date and a 98% increase in the amount of minimum royalties,” he added.
Due to the ongoing uncertainty surrounding the evolution of the Covid-19 pandemic, Iconix did not provide financial guidance for fiscal 2021.
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