Iconix Brand Group Inc. anticipates overall revenue growth in 2009, with the bulk coming from the relationship of its brands with Wal-Mart Stores Inc.
However, stripping out gains from the OP, Danskin Now and Starter brands carried at Wal-Mart, the company expects business to be weaker “across the board,” Neil Cole, chairman, president and chief executive officer, told analysts on a conference call Tuesday.
Net income for the fourth quarter ended Dec. 31 fell 10.9 percent to $17.1 million, or 28 cents a diluted share, identical to analysts’ consensus estimate from Yahoo Finance. Year-ago quarterly profit was $19.2 million, or 31 cents a share, but came to 27 cents a share excluding a one-time gain of 4 cents a share related to the company’s litigation over its Bongo brand. Revenues grew 14.4 percent to $54.3 million, from $47.4 million.
“As 2008 unfolded, it became more and more evident that we were heading into one of the most challenging economic times of our generation,” Cole said, adding that Iconix’s direct-to-retail brands, which are licensed directly to retailers, are becoming “a much larger percent” of its revenue. They accounted for about 25 percent of royalties in 2008 and should be “well over 50 percent in 2009,” he said.
“We’re thinking that each business is going to be challenged with what’s happening with the consumer,” Cole said. “Especially in the first half of the year, we’re projecting…5 to 10 percent down on each brand. Hopefully, we’re going to get some surprises.”
Nonetheless, Cole said investors would see revenue growth in the second half as Wal-Mart expands internationally and Iconix completes the transition of its Mudd brand to a direct-to-retail licensing relationship with Kohl’s Corp.
For the year, profits rose 10 percent to $70.2 million, or $1.15 a share, versus $63.8 million, or $1.04 a share, in 2007. Revenue jumped 35.5 percent to $216.8 million from $160 million.
Iconix affirmed its full-year guidance of earnings per share between $1.20 and $1.30, excluding a change in accounting policy related to convertible debt, on revenues of $210 million to $220 million.
The company’s shares closed Tuesday at $8.52, down 13 cents or 1.5 percent, in Nasdaq trading.
My character, Dinah Madani, is just the coolest, [most] badass woman imaginable," says @amberroserevah. The actress stars in @marvel's newest series on @netflix, @thepunisher. To prepare for her role, Revah sat down with Homeland agents to get a real sense of with Dinah's day-to-day life is really like. Read our full interview on WWD.com. #wwdeye (📷: @jilliansollazzo)
A scene from the 91st annual @macys Thanksgiving Day Parade. The parade, which boasts 50 million TV viewers and 3.5 million on-site spectators, is considered one of the largest and most watched parades in the world. (📷: Jason Szenes/EPA-REX)
The circus came to @bloomingdales 59th Street on Tuesday night and lit up Lexington Avenue with acrobatic dancers, death-defying knife throwing, sword swallowing and aerial acts with no net. The 45 minutes of theatrics built up to unveiling the holiday windows depicting @swarovski crystal-encrusted circus pieces and scenes from “The Greatest Showman” – songs from the soundtrack included. See the rest of the photos on WWD.com #wwdfashion (📷: Joshua Scott)
The psychedelic fashion that pervaded the ’60s is back with an exhibit at the @museumofcityny. “Mode New York: Fashion Takes a Trip” chronicles the changing styles from 1960 through 1973 and features designers such as @ysl, @oscardelarenta and more. The exhibition, which is on display through April 1, is organized into four periods: First Lady Fasion, Youthquake, New Bohemia and New Nonchalance. Pictured here is model Pat Bardonella during the Garvey Day Parade in 1968. (📷: @kwamebphoto) #wwdeye #wwdfashion
“People should be a lot more honest in expressing both the dark and light of themselves. We need to give each other the space to do that because it’s the only way we can grow and evolve,” says @noelwells of her new film “Mr. Roosevelt,” which is largely based on her own struggles. Unexpectedly leaving @nbcsnl in 2014 after just one season, Wells felt set back in her self-esteem and career trajectory. She quickly refocused her energy to more personal projects, which led to the completion of “Mr. Roosevelt.” Read the rest of WWD’s interview with the “Master of None” actress on WWD.com #wwdeye (📷: @jilliansollazzo)
@barbrastreisand is giving fans a chance to see her perform up close in a new concert series, which makes its debut on @Netflix today. From behind-the-scenes takes to her concert performance in Miami last December, the two-hour streaming special captures Streisand in her element. Pictured here is the singer/actress photographed for WWD in 1963. (📷: Palmieri Tony) #wwdeye #wwdarchive
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion (📷: Dominique Maître)
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)