Iconix Brand Group on Tuesday posted a 77 percent surge in second-quarter earnings, boosted in part by acquisitions.
For the three months ended June 30, earnings rose to $14.8 million, or 24 cents a diluted share, from $8.3 million, or 19 cents, in the same year-ago quarter. Licensing and commission revenue jumped to $39.1 million from $18.4 million last year.
For the six months, earnings increased 75.4 percent to $27.5 million, or 45 cents a diluted share, from $15.7 million, or 37 cents, in last year's period. Total revenue grew to $69.9 million from $31.7 million.
"Overall, we are pleased with our results in what was a very challenging quarter for the overall retail environment," said Neil Cole, chairman, president and chief executive officer, in a call to Wall Street analysts. "I believe that the fact that we were able to double our revenue in a quarter where two of the three months of retail were so difficult, it's a testament to the strength of our business model."
Solid earnings were driven partially by the new acquisitions of Ocean Pacific, Rocawear, Danskin, Mossimo and London Fog, said Eric Beder, specialty analyst at Brean Murray, Carret & Co., in a research note.
"We believe London Fog represents a prime example of what Iconix has proven time and time again as its key forte: re-creating an appealing brand image with the potential for material expansion," Beder said in the note.
Iconix will roll out London Fog starting in the third quarter in all Macy's stores, select Dillard's and Nordstrom locations, with an exclusive Canadian expansion in Hudson's Bay and Zellers. The company also will begin its first Danskin ad campaign in the spring.
Iconix, which owns and licenses brands including Candie's, Bongo and Mudd, reaffirmed its previously announced guidance in which earnings per diluted share are expected to hit between 96 cents and $1.
A Stella McCartney sketch of a custom dress made from protein-based silk in partnership with biotech lab Bolt Threads. The dress will be displayed at The Museum of Modern Art's upcoming design exhibition, "Items: Is Fashion Modern?"