Iconix Bullish on Good Results, Widening Programs
August 11, 2008-- Home Textiles Today,
Brand management firm Iconix Brand Group posted strong results for the second quarter ended June 30 and year to date, with net income rising 11% to $16.5 million for the quarter, and up 26% to $34.7 million for the half.
Warren Clamen, cfo, noted on last week's earnings call that the company has reduced its debt. David Conn, evp, pointed to the Iconix diversification of brands as a burgeoning strength.
Conn remarked that direct-to-retail licensed brand Candie's at Kohl's has improved from its downtrend in the first quarter to flat in Q2 — and said that the spring installations of Candie's shop-in-shops in all Kohl's stores would continue lifting results. He called the Bed Bath & Beyond launch of Royal Velvet towels and rugs "strong" and also opined that the soft-fall, major-spring launch of Cannon at Sears and Kmart was an "opportunity to quickly build share" as the Martha Stewart Everyday program phases out during 2009.
Neil Cole, chairman and ceo, expressed his confidence by reaffirming full-year guidance for revenue of $215 million to $220 million, and earnings per share of $1.15 to $1.20.
Cole also said the company would have some $100 million in cash on hand by yearend, and although it had recently passed on offers to acquire "various distressed brands," Iconix was still keen on new acquisitions.
Iconix reported quarterly revenue of $51.7 million, up 32% from $39.1 million one year ago; six-month volume of $107.4 million was up 54%.
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