Iconix expands global reach, sees growth in home brands
Home & Textiles Today Staff -- Home Textiles Today, October 29, 2013
New York - Iconix Brand Group is on path to conquer the world with its broad brand portfolio, having recently forged new joint ventures in Australia and Southeast Asia and reporting growth at its myriad existing alliances elsewhere around the globe.
During the company's third quarter earnings call this morning, chairman and ceo Neil Cole outlined Iconix's plans.
"Internationally, we have made significant progress, and we expect this business to almost double, representing almost a third of our overall business [this year]," he said. "And we expect international will grow to 40% of our revenue in 2014."
Iconix recently acquired three international brands and "made efforts to partner with strong, local operators to build our brands in these new territories," he continued.
Today, Iconix has seven international joint ventures, including new ones in Australia and Southeast Asia.
A big component of Iconix's international expansion is Peanuts, which is owned by Peanuts Worldwide LLC - of which the company owns 80%.
In other news, home "continued to perform well" over the course of the third quarter, Cole said, adding that the segments was led by "strength with Charisma in Costco and Fieldcrest at Target."
Royal Velvet, exclusive to JCPenney, is "showing growth into next year."
Third quarter total revenue rose 24% to $107.2 million compared to $86.6 million a year ago.
Net income increased 7% to $29.0 million and earnings per share rose 32% to 50 cents.
Year to date, total revenue grew 22% to $327.4 million. Net income was up 22% to $101.9 million, and diluted EPS increased 45% to $1.67.
The company noted that included in the third quarter and year-to-date results is the formation of its new joint venture in Australia, which contributed $5 million to revenue.
"Looking ahead into 2014 and beyond, we expect to continue to deliver strong growth through both organic initiatives as well as acquisitions, as we continue to build our global footprint and further leverage our strong balance sheet," Cole said.
Iconix is maintaining its 2013 revenue guidance of $425 million to $435 million and raised its EPS guidance to $2.06-$2.16 from $1.97-$2.07
Iconix's 2014 guidance calls for: revenue of $440 million to $455 million and EPS of $2.19-$2.29.
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