Fieldcrest shines for Iconix in 2011, Royal Velvet preps for launch at JCP
Retail Editor 3 -- Home Textiles Today, February 22, 2012
New York - Fieldcrest was the strongest performer among home brands within Iconix Brand Group during the fourth quarter and full year, the company noted during its earnings call today.
Yehuda Schmidman, coo, offered a summary of the performances of Iconix's brands over the two periods, noting both "some ups and downs" in the domestics business.
"Fieldcrest is the bright spot of our home business, and we expect it to benefit from Target's expansion in Canada," Schmidman said.
Chairman and president Neil Cole described the Wavery business as solid. "We have a nice paint business at Lowe's, a pretty good business across the board at multiple retailers, including JCPenney."
On the topic of Royal Velvet, an analyst asked Cole about the expected impact on the brand from JCP's recent alliance with Martha Stewart.
"The business we're taking was more their Chris Madden business and it's a pretty significant business," Cole continued. "I believe Martha [launches] in '13, and our launch is in May, so we have not seen a difference so far."
Initially, Iconix's Royal Velvet program ay JCP will consist of sheets, fashion bedding, blankets, pillows, towels, rugs, bath coordinates and window treatments, and will be sold at both stores and at www.jcp.com.
When asked by another analyst about Iconix's plans for further growth with JCP and Walmart, Schmidman said Iconix has been "talking to management, and both [JCP and Walmart] are looking to also grow, and transform on JCP's level. And we see opportunities for us to grow with both retailers." He added that growth can stem from both existing and new brand programs.
The company reached new performance milestones in the fourth quarter and fiscal year.
Fourth-quarter net income climbed 23% to $27.2 million, or earnings per share of 36 cents. Total revenue rose 9.0% to $95.5 million.
For the full year 2011, net income increased 28% to $126.1 million, or $1.67 per share. Revenue was up 11% to $369.8 million.
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