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.
“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