Shares of Iconix Brand Group Inc. vaulted more than 10 percent Tuesday after the owner and licensor of fashion brands, including Candie’s and Joe Boxer, matched Wall Street’s expectations with an 11.3 percent jump in second-quarter profits.
For the quarter ended June 30, the New York-based company reported net income of $16.5 million, or 27 cents a diluted share, compared with $14.8 million, or 24 cents a diluted share, in the year-ago period. Revenue for the quarter, all derived from licensing, increased 32.3 percent to $51.7 million, versus $39.1 million.
Analysts forecast earnings of 27 cents a share on revenue of $53.2 million, according to Yahoo Finance.
Shares of the New York-based company closed at $13.45, up $1.27, or 10.4 percent.
“We really believe we’re in the beginning of” a period of growth, chairman and chief executive officer Neil Cole said, adding that strong cash flow is key. Despite “a challenging retail and economic environment…I am confident that we will continue to execute our plan for the remainder of the year.”
Iconix posted a cash flow of $26.3 million for the quarter versus year-ago cash flow of $25.8 million, a 1.9 percent increase. Cole said the company has no plans to repurchase shares, but will “stockpile” its cash to continue to grow both organically and through acquisitions.
Part of this strategy includes initiatives such as a launch of three of the company’s brands — OP, Starter and Danskin Now — at Wal-Mart stores and the debut of Cannon at Sears and Kmart. The company also said recently that it would expand five of its brands internationally, including London Fog, Joe Boxer and Rocawear.
“London Fog has really been one of our great launches,” said Cole, who added that Iconix will begin rolling out the brand to a broader range of retailers. London Fog now has business with stores such as Nordstrom, Dillard’s and Belk.
Profits for the six months jumped 26 percent to $34.7 million, or 57 cents a diluted share, from $27.5 million, or 45 cents, last year. Revenues gained 53.6 percent to $107.4 million, from $69.9 million.
Iconix reaffirmed 2008 guidance for revenue in a range of $215 million to $220 million and diluted earnings per share of $1.15 to $1.20. Cash flow for the year is expected in the range of $166 million to $119 million.
Analysts on average anticipate earnings of $1.17 on revenues of $220.2 million.
There'll be no rest for those headed to Europe for men's, as Paris just closed the gap with Milan. According to a provisional calendar released by the Chambre Syndicale, Paris Men's Week will now open a day earlier on January 16. See new highlights on the official lineup on WWD.com. #wwdnews #wwdfashion (📷: @kukukuba)
BREAKING: Jonathan Saunders is leaving @DVF. The designer has resigned from his position as chief creative officer of Diane von Furstenberg, the company said in a statement on Friday. At the time of his hire, von Furstenberg said Saunders’ arrival symbolized and facilitated her stepping back from the day-to-day duties that occupy the work of a full-time creative director. The British designer joined DVF in May 2016 and was in charge of all product categories. #wwdnews
For @versace_official’s spring ad campaign, the brand emphasized the archival prints from the spring tribute collection dedicated to the late Gianni Versace. Closing out the show were five of Gianni’s favorite models: Cindy, Naomi, Carla, Helena, and Claudia. Bowing on December 18, the new campaign is yet another tribute to supermodel-dom as the images by Steven Meisel are fronted by @iamnaomicampbell, @cturlington, @gisele and more. #wwdfashion
Four-time Oscar-nominated actress Annette Bening has been waiting 20 years to play Gloria Graham in "Film Stars Don't Die in Liverpool," which will be released on December 29. The movie about Graham – a Hollywood star known for her controversial relationship with a younger Englishman named Peter Turner – is based off a memoir Turned wrote. "She felt vulnerable to him, because she loved him, she really did love him. And anyone that we really truly are in love with, we re vulnerable to in a very deep way," said Bening. Read our full interview with the modern icon of an actress on WWD.com. #wwdeye (📷: @ninebagatelles; Styled by @cristinaehrlich)
The crisp white button down: a staple that can be dressed up or down and accessorized throughout the decades. Here, on a Art Basel-goer in 2017 on the left and on the iconic Audrey Hepburn in “Roman Holiday” in 1953 on the right. #tbt #wwdfashion (📷: Andrew Morales)
Known for her work with @victoriassecret, 25-year-old model @georgiafowler is raising her profile in Hollywood. Fowler stars in @vincecamuto’s holiday campaign, which launched in partnership with “Pitch Perfect 3.” “Almost every shoot with Vince Camuto, I’ve had to face a fear…It was definitely a challenge. I’m so grateful for it, though. I’ve always wanted to be a pop star, so that was the perfect chance,” Fowler said. Head to WWD.com to read about Fowler’s experience modeling, including at the #VSFashionShow, and her relationship with Nick Jonas. #wwdeye (📷: @jilliansollazzo)
EXCLUSIVE: Huda Kattan just became the first beauty influencer to land a major beauty deal. Kattan's business, @hudabeauty, has received a minority investment from private equity firm TSG Consumer Partners. The brand, which industry sources say is on track to do $200 million in retail sales for 2017, will receive support on product, retail and geographic expansion through the deal. Get all the details on the deal and read @_a_collins' interview with Kattan on WWD.com. Link in bio. (📷: @jgreenery) #wwdbeauty #wwdnews
Peruvian model @juanaburga_official – who is known for walking the runways of @rodarte, @viviennewestwood and @torybuch – is making the move to the big screen with drama “Los Últimos.” The film premiered in Argentina in November and arrives in the U.S. and Europe in 2018. On making the switch from modeling to acting, Burga told WWD: “It’s a completely different thing – a lot of people think it’s similar or try to connect things, especially like getting used to the camera or being looked at all the time or playing these different characrers, but film is a completely different story.” #wwdeye (📷: @jgreenery)
London’s newly opened @designmuseum will look back on the life and work of Azzedine Alaïa in a show that the designer helped to curate before he died of heart failure last month. The retrospective, which Alaïa had worked on with Mark Wilson, chief curator of the @groningermuseum, will look at the impact of his work worldwide. The show, “Azzedine Alaïa: The Couturier,” will run from May 10 to October 7. Read more about the exhibit on WWD.com #wwdnews #wwdfashion (📷: @zefashioninsider)