- Prachi Singh |
Iconix Brand Group for the third quarter ended September 30, 2019 reported revenue of 35.5 million dollars, a 23 percent, as a result of the transition of its Danskin and Mossimo direct to retail licenses in the women’s segment and the effect of the Sears bankruptcy on Joe Boxer and Bongo brands in women’s and the Cannon brand in home. The company’s men’s segment revenue increased 9 percent driven by the Buffalo and Starter brands. International segment declined 17 percent due to poor performance of Umbro in China and Umbro and Lee Cooper in Europe. For the nine months, total revenue was 105.8 million dollars, a 27 percent decline compared to the nine months in the previous year.
Commenting on the update, Bob Galvin, the company’s CEO said in a statement: “Results for the third quarter were consistent with managements’ expectations, as we continue to stabilize the business and our operational cost structure. Our focus on the business and costs continue to help improve our adjusted EBITDA margin. We continue to develop our pipeline of future business, as we have signed 155 deals year to date for aggregate guaranteed minimum royalties of approximately 126 million dollars.”
Highlights of Iconix’s operational performance
The company said, operating loss for the quarter was 8.1 million dollars compared to operating income of 12.1 million dollars in the third quarter of 2018, while adjusted EBITDA was 20.9 million dollars which represents an operating loss of 8.1 million dollars compared to 16.1 million dollars, which represents operating income of 12.1 million dollars. Operating income for the nine months was 28.9 million dollars compared to an operating loss of 66.9 million dollars in the nine months ended September 30, 2018, while adjusted EBITDA was 59.7 million dollars, which represents operating income of 28.9 million dollars compared to 63.2 million dollars, which represents operating loss of 66.9 million dollars.
Adjusted EBITDA margin in the third quarter was 59 percent compared to 35 percent in the previous year, while adjusted EBITDA margin in the nine months was 56 percent compared to 44 percent in the same period of 2018. GAAP net income attributable to Iconix for the third quarter reflects a loss of 35.7 million dollars compared to income of 20.2 million dollars for the third quarter of 2018. GAAP diluted EPS reflects a loss of 3.07 dollars compared to income of 26 cents for the third quarter of 2018. GAAP net income for the nine months reflects a loss of 16.5 million dollars compared to a loss of 31.4 million dollars for the nine months of 2018, while GAAP diluted EPS reflects a loss of 1.62 dollars compared to a loss of 7.35 dollars for the nine months ended September 30, 2018.
Picture:Facebook/Buffalo David Bitton