Iconix Revved About Royal Velvet
Cecile Corral -- Home Textiles Today, February 26, 2013
NEW YORK - After a transitional year for Royal Velvet, brand owner Iconix Brand Group is optimistic about its recent performance at exclusive licensee JCPenney amid the retailer's transformation efforts.
"Royal Velvet looks fabulous," noted Neil Cole, Iconix chairman and ceo, in response to an analyst's questions during the company's fourth quarter and year-end earnings call last week. "We are rolling it out to shops in May. But it is already doing better than we thought it would. JCPenney has had some troubles, but we are very con fi- dent about how they are executing the program."
In his prepared remarks at the onset of the presentation, he noted, "For Royal Velvet, we are now one year into the transition, and there should only be upside from here."
Overall, home "continued to perform well," over the past quarter and fiscal year, Cole said, especially via strengths from the Charisma, Sharper Image, and Fieldcrest brands.
Still, the drag from Royal Velvet was blamed in part for offsetting "healthy trends across the majority of our portfolio" during the fourth quarter, noted Warren Clamen, Iconix evp and cfo.
Iconix's fourth quarter total revenue was down 11% to $85.1 million, compared to $95.5 million the prior year period.
Net income dipped 7.7% to $28.9 million versus the year ago's $31.3 million, while earnings per share for the quarter came in flat at 41 cents.
Full year 2012 total revenue fell 4.3% to $353.8 million. Net income slid 4.2% to $122.0 million.
The Royal Velvet towel wall at JCP.
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