NEW YORK — Iconix Brand Group Inc. on Thursday posted a gain in third-quarter net income and reaffirmed full-year 2012 guidance.
For the three months ended Sept. 30, net income attributable to Iconix Brand Group rose 4.5 percent to $27.1 million, or 38 cents a diluted share, from $26 million, or 34 cents, last year. Licensing and other revenue fell 6.6 percent to $86.6 million from $92.7 million.
The company said free cash flow for the third quarter was $43.2 million, or 61 cents a diluted share, versus $44.6 million, or 59 cents, last year.
Neil Cole, chairman and chief executive officer, said in a conference call to Wall Street analysts, “While 2012 has had certain challenges for us with the transition of the Royal Velvet license and a tough men’s business, we were excited about our growth prospects heading into 2013 as we further expand our international footprint, and begin to see stabilization in some of our men’s brands.”
In the men’s brands, Cole said the company expects to see improvement in 2013 as it focuses on expanding distribution, “specifically for our Rocawear brand.” The top performing women’s brands were Bongo, Rampage and Badgley Mischka.
“This fall Truth or Dare launched its footwear collection in Macy’s and Nordstrom, and will be introduced in the intimate collection for holiday. Material Girl will be rolling out to all Macy’s junior doors by next spring,” Cole said.
The ceo added that in 2013, with the Umbro acquisition from Nike Inc. for $225 million that was revealed last week, “we already expect international to represent approximately 30 percent of our business. Combining the Peanuts and Umbro businesses with our Latin America, Europe, China and India joint ventures, we will have an extremely strong presence and platform across the world that should facilitate growth to the entire Iconix portfolio.”
Cole said Umbro is expected to generate $40 million to $45 million of royalty in 2013.
The company reaffirmed full-year 2012 guidance and expects to achieve the higher end of its revenue guidance of between $340 million and $350 million. Iconix also reaffirmed its 2012 free cash flow guidance of between $174 million and $181 million.
For 2013, Iconix projected revenues of between $395 million and $405 million, and a diluted earnings per share range of $1.75 to $1.85.
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