Iconix Group Lowers Guidance
October 5, 2009-- Home Textiles Today,
Iconix Brand Group, owners of Royal Velvet as well as several home and apparel brands, lowered its fiscal year guidance last week.
The company now expects annual revenue in the range of $215 million to $220 million, roughly 5% above last year's revenue. Originally, Iconix had forecast fiscal year revenue of $223 million to $230.
Earnings per share are now projected at $1.17 to $1.22. Previously, it was $1.30 to $1.35. Income was impacted by a June equity offering as well as shifting the Rocawear women's license to a new licensee, the company said.
"While we are disappointed that the strong performance of our brands has not been enough to completely offset the dilution from the equity offering and Rocawear women's transition, we believe our company is well positioned for future growth," said Neil Cole, chairman and ceo.
"Further, we currently have over $230 million of cash on our balance sheet and have the ability to execute on possible future acquisitions, however, we will continue to remain disciplined when pursuing potential opportunities," Cole added.
Iconix's other home brands include Cannon, Fieldcrest, Charisma, Waverly, Candie's and Joe Boxer.