Iconix Brand Group Inc. on Thursday said it acquired the Sharper Image brand for $65.6 million in cash, the same day it posted third-quarter results.
This story first appeared in the October 28, 2011 issue of WWD. Subscribe Today.
Iconix purchased Sharper Image from a joint venture led by Hilco Consumer Capital, Gordon Brothers, Infinity Lifestyle Brands and Bluestar Alliance.
Neil Cole, chairman and chief executive officer of Iconix, said, “With the addition of the Sharper Image brand, we continue to demonstrate the diversification of our business model and strength of our company. We always believed that the Iconix platform could be leveraged across numerous industries and this acquisition reinforces that message.”
Profits attributable to Iconix, as well as sales, declined in the three months ended September 30, although adjusted earnings per share met Wall Street’s estimates.
Income fell 5.3 percent to $26 million, or 34 cents a diluted share, from $27.4 million, or 37 cents, last year. Adjusted EPS was 40 cents. Revenues primarily from licensing was down 4.3 percent to $92.7 million from $96.9 million.
Cole said, “As we look to 2012, we are excited about the many opportunities ahead as we continue to grow our platform through new retail partners, new categories and new geographies.”
For the nine months, income jumped 29 percent to $98.9 million, or $1.31 a diluted share, from $76.7 million, or $1.03, a year ago. Revenues gained 12.2 percent to $274.3 million from $244.6 million
The company said that for 2012 it expects diluted EPS at between $1.62 to $1.69 on revenues of between $370 million to $385 million.