For Iconix Brand Group, the focus is international — whether acquisitions or initial public offerings.
International comprises about 40 percent of the firm’s revenues.
In a conference call to Wall Street analysts following the company’s report of second-quarter results on Tuesday, chairman and chief executive officer Neil Cole said, “I see [international] continuing to grow.”
Cole noted the firm’s Peanuts franchise around the world, including its upcoming 2015 computer-animated 3-D film, contributing to revenues. He also cautioned that the growth could depend too on the “types of acquisitions we have going forward. The last three acquisitions were international brands in Umbro, Lee Cooper and Buffalo,” adding that there’s no way to predict the types of deals going forward.
Cole emphasized that the pipeline remains strong and that the company has a strong balance sheet. “We have over $500 million available to us between cash and our current facilities. That’s without even using the securitization warehouse vehicle we have as we continue to buy more properties.”
He also said that while the company is hoping for the initial public offering of a brand under the Iconix China joint venture to occur in the third quarter, “we’re not sure we’re definitely going to be a seller and we’re considering possibly that monetization might happen in early 2015 because it’s based on a multiple of how we perform this year. And our performance is pretty strong this year.”
There was speculation earlier this year that the brand headed for a Chinese IPO is Iconix’s Candie’s operation. Other brand investments under the Iconix China umbrella include Rampage, Badgley Mischka, Royal Velvet, Ed Hardy and Material Girl. China Outfitters Holdings Ltd., a men’s wear retailer that was the London Fog partner in China, was the first of the brands to go public in December 2011. The IPO saw private equity firm KKR & Co. take a $60 million stake in the offering. Iconix elected to cash out half of its investment in the business and leave half in the public firm.
For the second quarter ended June 30, Iconix saw a slide in profits despite record revenue gains.
For the three months, net income fell 8.8 percent to $35.3 million, or 60 cents a diluted share, from $38.7 million, or 66 cents, a year ago. Earnings before interest, taxes, depreciation and amortization rose 8 percent to $78.2 million from $72.7 million last year. Free cash flow was $60 million, compared with $60.8 million last year. Total revenues rose 3.3 percent to $118.9 million from $115.1 million.
For the six months, net income shot up 30.4 percent to $95.1 million, or $1.63 a diluted share, on a 6.8 percent revenue gain to $235.1 million.
“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