Iconix slips deeper into loss
New York-based brand management company Iconix Brand Group, Inc. announced a net loss of $95.0 million in the fourth quarter on Monday, widening from the loss of $69.1 million reported by the group in the same period in the previous year.
Diluted loss per share at the company, which owns brands including Umbro, Danskin and Lee Cooper, was $8.11, a slight improvement from a loss per share of $9.04 in the prior-year period.
Iconix’s fourth-quarter revenues increased 1% to $43.2 million, up from $42.7 million in Q4 2018, with growth being driven by a 22% rise in the company’s women’s segment, pushed by a strong performance in the Danskin and Rampage brands, as well as the group’s recently signed Joe Boxer agreement with Sears.
This progress was largely offset by a 12% decline in revenues in Iconix’s home segment, drained by the termination of the company’s direct-to-retail license for the Royal Velvet brand, as well as a 5% decrease in the international segment, impacted by the termination of the group’s Umbro licensee in China.
“Results for the fourth quarter of 2019 were consistent with management’s expectations, as we continue to stabilize the business and our operational cost structure,” said Iconix CEO Bob Galvin in a release.
In the full fiscal year 2019, Iconix’s revenues totaled $149.0 million, a 21% decrease from $187.7 million in the previous year. The decline was driven by decreases in the company’s women’s and home segments.
Annual net loss was $111.5 million, or $10.56 per diluted share, compared to a loss of $100.5 million, or $14.93 per diluted share, in fiscal 2018.
Due to uncertainty caused by the ongoing Covid-19 pandemic, Iconix has not yet provided financial guidance for fiscal 2020.
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