Despite recording an increase in sales for the second quarter, Iconix Brand Group Inc. said Wednesday that its net income fell 31.2 percent.
This story first appeared in the July 26, 2012 issue of WWD. Subscribe Today.
Iconix attributed the sizable decline to the fact that, a year earlier, it gained approximately $21.5 million related to its 2011 acquisition of the Ed Hardy license.
For the period ended June 30, the New York-based vendor said quarterly income attributable to Iconix totaled $28.6 million, or 40 cents a diluted share. This compared with year-ago income of $41.5 million, or 55 cents a share.
The company reported non-GAAP diluted earnings per share of 45 cents.
Quarterly revenues for the company, which licenses clothing brands such as Badgley Mischka, London Fog and Rocawear, climbed 4.9 percent to $93.6 million, from $89.3 million.
Analysts were expecting EPS of 42 cents on sales of $85.4 million.
“Our specialized business model remains strong and continues to prove its relevance across industries and geographies, as we enter new categories such as entertainment and electronics and new markets such as India,” chairman and chief executive officer Neil Cole said on the company call. “Looking at the future, we see opportunities to organically grow the portfolio both domestically and internationally through our existing partners, new categories and, importantly, global expansion. We believe our portfolio can achieve low-single-digit organic growth on a long-term basis.”