“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.
From overseeing America’s fastest-growing speciality retailers to codifying cool, WWD talked to the women who are leading the way for the future of beauty. Check out our Instagram Stories to see how these women built today and are creating tomorrow. (📸: @hannah_khymych) #wwdbeauty
For @laperlalingerie's spring 2018 show, the brand chose to host their event at @thevenetianmacao. With Chinese megastars @bingbing_fan and @hubing in attendance, La Perla debuted a rock ‘n’ roll-inspired collection. The show marked the start of Sands Macao Fashion Week, which runs from October 19 to 24 — the city’s first such event. Pictured here are models backstage with glimmering eyes. #wwdfashion (📷: Cheuk-Yin To)
Trending for spring 2018: top stitch design. Gone are the days of stitch just for seams — designers are using the once-minimal detail to create strong decorative elements. (📷: Paola Testa; Styled by @andrew_shang) #wwdfashion
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)