Home a highlight for Iconix in Q2
Don Hogsett -- Home Textiles Today, July 24, 2013
New York - Iconix Brand Group's home businesses proved resilient in the second quarter, especially the Charisma and Royal Velvet brands, both of which generated notably strong results for the company during the three-month period.
Neil Cole, ceo and president, offered an update on the company's different product categories of brands during Iconix's earnings conference call this morning.
With regard to home, the business "continues to perform well," he said. "Charisma is very strong at Costco, and it's expanding with Costco into Canada. Royal Velvet is positioned as one of largest home brands at JCPenney, and it is benefitting from JCPenney's focus on its overall home strategy."
In all, Iconix enjoyed a record quarter, with a 23% leap in total revenue to $115.1 million; a 32% jump in net income on a non-GAAP basis to $42.7 million; and a 60% boost in non-GAAP diluted earnings per share to 72 cents.
Year to date, total revenue was $220.2 million, a 21% increase. On a non-GAAP basis, net income was $78.9 million, a 23% increase; and non-GAAP diluted earnings per share was $1.25, a 42% increase.
"With record results, we continue to make progress on our growth initiative," noted Warren Clamen, evp and cfo.
A point of acute focus for Iconix is international expansion, which calls for "building brands around the world." Cole said the company expects this segment to represent about 33% of its total business this year.
"Our brands have 1,300 free-standings stores worldwide and 65 direct-to-retail partnerships," he added.
During the question-and-answer session of the conference call, Cole was asked about Iconix's business in the U.S.
"Our business here is...mature might be the best word [to describe it]. And there is just tremendous opportunity around the world for us to grow...We have to make sure we participate. This is an exciting time for our company."
The company also offered its 2013 guidance. Iconix said it is maintaining its revenue guidance of $425 million to $435 million for the year. However, it is raising its 2013 guidance for non-GAAP diluted EPS to $2.20-$2.30 from $2.10-$2.20, and GAAP diluted EPS to $1.97-$2.07 from $1.87-$1.97.
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