A shot from Iconix Brand's Candies campaign with actress Sarah Hyland.

John Haugh, chief executive officer of Iconix Brand Group, said the company’s balance sheet has been stabilized, but that it’s taking longer than expected to grow the business. 

The company’s preliminary second-quarter results showed a net loss of $16.3 million, or 30 cents per share, compared with net income of $10.6 million a year earlier. This was on operating income of $35.3 million, a 6 percent decline. Licensing revenue fell 10 percent to $61.6 million during the quarter.

Shares of the company fell 9.6 percent to $5.55, the company’s second-lowest price in more than 12 years.

“We entered the year with two primary goals, first to strengthen the balance sheet and enhance financial flexibility, and second to execute on our organic growth strategy,” Haugh said. “With the refinancing announced last week, we can report that our near-term balance sheet objectives are substantially complete. We know we need to deliver on both of our objectives. To that end, organic growth is taking longer than originally anticipated, but we are fully focused on our organic growth objectives and will have more to share with you in the coming weeks and months.”

Part of that growth could come from brand revitalization efforts, along the lines of recent developments at Ecko Unltd., which is set to roll out a new iteration, Ecko Function, next month.

Iconix partially attributed the loss to $14 million in expenses related to a paydown of a term loan, as well as an unspecified charge for a licensee termination. Last week, the company entered into a refinancing agreement on a $300 million term loan as well, and during the second quarter, it decided to deconsolidate a joint venture in Southeast Asia.

This deconsolidation is the reason Iconix is characterizing the second-quarter results as preliminary. It expects to finalize them this month.

The company also revised its full-year outlook, and now expects revenue to be in the range of $225 million to $235 million instead of between $235 million to $245 million, and earnings per share to be a loss of between 1 cent and 6 cents, compared to an earlier projected gain of 29 cents to 44 cents.

Iconix also changed its guidance after releasing first-quarter results, which showed a loss of $4.3 million and coincided with its decision to sell its interest in the “Peanuts” and “Strawberry Shortcake” brands for $345 million.

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