Iconix third-quarter revenue falls 23%
today Nov 13, 2019
NYC-based brand management company Iconix Brand Group has reported total revenue of $35.5 million for the third quarter of 2019, compared to $46.2 million last year.
For the nine months ended September 30, 2019, total revenue of the company was $105.8 million, a 27 percent decline, compared to $145 million in the nine months a year prior.
The decline in revenue was primarily a result of the transition of Iconix's Danskin and Mossimo direct-to-retail licenses in its Women’s segment, said Iconix in a press release.
Revenue for the third quarter of 2019 was also impacted by the effect of the Sears bankruptcy on its Joe Boxer and Bongo brands in women’s and the Cannon brand in home. The company’s overall revenue for the Cannon and Joe Boxer brands was down year-over-year.
Iconix men’s segment revenue increased 9 percent in the third quarter, compared to the prior-year quarter, primarily from the Buffalo and Starter brands, while its international segment declined 17 percent, as a result of poor performance at Umbro in China, and Umbro and Lee Cooper in Europe.
“Results for the third quarter of 2019 were consistent with managements’ expectations, as we continue to stabilize the business and our operational cost structure,” said Bob Galvin, CEO.
“Our focus on the business and costs continue to help improve our Adjusted EBITDA margin. We continue to develop our pipeline of future business, as we have signed 155 deals year to date for aggregate guaranteed minimum royalties of approximately $126 million. Additionally, we have entered into an agreement regarding our shareholder class action litigation and an agreement in principle regarding the SEC investigation, potentially putting both of these lingering legacy matters behind us.”
The company added that GAAP net income for third quarter reflected a loss of $35.7 million, compared to income of $20.2 million for the third quarter of 2018.
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