Iconix Brand revenue still down in 2017
US clothing marketer Iconix Brand Group reported a loss on Wednesday for the full year ended December 31, 2017, while its CEO remained optimistic about the year to come.
For the year, its loss widened to $489.3 million, or $8.66 per share.
Still, CEO John Haugh highlighted a sold foundation for the year ahead (noting the close completion of the company’s near-term debt obligations), along with the company’s recent launch with Amazon.
"2017 continued to be a year of change as we refinanced our balance sheet and refined our business model. Importantly, we enter 2018 better positioned to leverage our brand portfolio anchored on our strategic focus to actively manage brands with our existing partners, while exploring new opportunities to expand our reach," said John.
"The launch of Starter with Amazon in 2017 and our recently announced multiyear agreement with Target for the Umbro brand demonstrates our ability to position our brands with the right long-term partners to maximize market presence and contribution to Iconix.”
Licensing revenue at the New York-based company was down 11 percent at $225.8 million. Excluding the Sharper Image brand, which was sold in the fourth quarter of 2016, Badgley Mischka and Southeast Asia revenue declined approximately 7 percent for the full year 2017.
For the fourth quarter of 2017, licensing revenue was also down 11 percent to $52.3 million. Excluding Sharper Image and Southeast Asia, revenue declined approximately 2 percent.
The brand management company, which owns brands like Rocawear, Material Girl, Buffalo, Joe Boxer and more, sold its entertainment segment to DHX Media for $345 million in cash early last year.
The sale has reduced the company’s debt, but has lead to a loss in sales.
The company still expects full year 2018 results to be within previously issued guidance, which includes full year revenue in a range of approximately $190 million to $220 million.
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