“International expansion and acquisitions are expected to be the primary drivers” of Iconix Brand Group Inc.’s growth in 2014, said the company’s chief executive officer Neil Cole. Cole also said in a conference call to Wall Street analysts following the firm’s posting of fourth-quarter and full-year results Thursday that Iconix continues to work on keeping its existing portfolio of brands “fresh [and] relevant.”
Iconix posted fourth-quarter profits that were essentially flat, although revenues for the period rose 23.6 percent.
For the three months ended Dec. 31, net income was up 0.2 percent to $26.15 million, or 44 cents a diluted share, from $26.09 million, or 37 cents, a year ago. Licensing and other revenue gained 23.6 percent to $105.3 million from $85.1 million for the quarter.
For the year, net income rose 17 percent to $128 million, or $2.11 a diluted share, from $109.4 million, or $1.52, in 2012. Licensing and other revenue rose 22.3 percent to $432.6 million from $353.8 million.
Cole also told analysts that the firm’s results were primarily driven by three key initiatives: “Number one, the continued expansion of our worldwide footprint; secondly, the acquisition of three global brands, and last, our continued commitment to share repurchases.”
Cole said that the firm last year formed four new international joint ventures in Canada, Australia, Southeast Asia and Israel, all having a similar structure as that used in prior buying deals in Latin America, China, Europe and India in which Iconix has a 50 percent ownership stake.
The company’s acquisitions last year include Umbro and Lee Cooper, as well as control of the Buffalo David Bitton brand. It also acquired the balance of the 49 percent stake of IP Holdings Unltd. it didn’t already own in connection with the Mark Ecko brand.
The company is maintaining its full-year 2014 guidance of revenues between $440 million to $455 million, diluted earnings per share between $2.19 and $2.29, and free cash flow of $210 million to $217 million.
Separately, the company’s board has authorized a share repurchase program of up to $500 million of the firm’s common stock over the three-year period. Iconix has about $110 million remaining under the previous $300 million stock repurchase program that was approved by its board in July.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast