Brand management firm Iconix Brand Group on Wednesday posted record third-quarter earnings and revenues.
For the three months ended Sept. 30, income jumped 113.8 percent to $17 million, or 28 cents a diluted share, from $7.9 million, or 18 cents, in the same year-ago quarter. Licensing and commission revenue spiked 93 percent to $42.7 million from $22.1 million.
For the nine months, income rose by 88.3 percent to $44.5 million, or 73 cents a diluted share, from $23.6 million, or 54 cents, a year ago. Licensing and commission revenue skyrocketed 109.3 percent to $112.6 million from $53.8 million.
"Our performance this quarter highlights the unique attributes of our licensing model where diversification from a portfolio of 15 brands and almost 200 licensees, combined with contractually guaranteed revenue and no inventory exposure, reduces our risk and volatility in difficult retail environments. Looking ahead to the remainder of this year and for 2008, I am confident we will continue to deliver strong increases in both revenue and profitability and execute our long-term growth plan," said Neil Cole, chairman and chief executive officer.
Iconix is projecting diluted earnings per share of between 96 cents and $1 for full-year 2007 on revenue guidance of $150 million to $160 million, and diluted EPS in the $1.35 to $1.40 range for full-year 2008 on revenues estimated at $240 million to $250 million.
Shares of Iconix on Wednesday jumped 20.84 percent to close at $22.85 in over-the-counter trading as investors reacted positively to the firm's full-year 2008 guidance. Over 3.7 million shares traded, compared with a three-month average trading volume of 930,392.
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