Iconix reports strong sales and profit growth
November 3, 2008,
New York – Profits and sales grew robustly in the third quarter for Iconix Brand Group, which today also announced a share buyback program.
The company reported net income for the third quarter ended Sept.30 of $18.3 million, an increase of 8% over $17.0 million in the prior year quarter. Sales zoomed 29% to $55.1 million, from $42.7 million one year ago.
Iconix chairman and ceo Neil Cole said the brand management and licensing company is bullish on pending and prospective deals in Asia and South America.
Iconix expects 2009 revenues to grow 7% to the range of $225 million to $235 million. Diluted earnings per share is projected in the range of $1.20 to $1.30.
Cole also said the company planned to spend up to 30% more on marketing in 2009 for its stable of 17 brands.
The Iconix board of directors authorized a program to repurchase up to $75 million of its common stock over a three year period, the company said. The plan does not obligate any specific number of shares, and may be suspended at any time at management's discretion. Iconix currently has 58.1 million shares issued and outstanding.