- Prachi Singh |
Iconix Brand Group, Inc. reported licensing revenue of 52.3 million dollars, an 11 percent decline in the fourth quarter, as compared to 58.8 million dollars in the prior year quarter. For the full year 2017, licensing revenue was 225.8 million dollars, an 11 percent decline as compared to 255.1 million dollars in 2016.
Commenting on the company’s performance, John Haugh, CEO of Iconix said in a media release: "2017 continued to be a year of change as we refinanced our balance sheet and refined our business model. Importantly, we enter 2018 better positioned to leverage our brand portfolio. With our near-term debt obligations satisfied today, we are now able to apply renewed attention to our business initiatives and lay the foundation for sustained, organic growth."
Iconix reaffirms 2018 outlook
The company said, previously announced full year revenue guidance was 190 million dollars to 220 million dollars and the that Iconix is on track to deliver approximately 12 million dollars of full year cost-savings aligning expenses with revenue base. The expects GAAP net income to range between 7 million dollars to 17 million dollars and non-GAAP net income between 20 million dollars to 30 million dollars.
Fourth quarter and full year result highlights
The company added that revenue in the fourth quarter of 2016 included approximately 4 million dollars of licensing revenue from the Sharper Image brand, which was sold last year and 1.3 million dollars of licensing revenue from the company's Southeast Asia joint venture, which was deconsolidated in the second quarter of 2017. Excluding Sharper Image and Southeast Asia, revenue declined approximately 2% for the fourth quarter of 2017.
Revenue in 2016 included approximately 9.3 million dollars of licensing revenue from the Sharper Image brand, 0.2 million dollars from the Badgley Mischka brand and 2.6 million dollars from the Southeast Asia joint venture. Excluding Sharper Image, Badgley Mischka and Southeast Asia, revenue declined approximately 7 percent for the full year 2017.
Operating loss for the quarter was 18.3 million dollars compared to a loss of 388.2 million dollars in the fourth quarter of 2016. Operating loss for the full year was 564.7 million dollars compared to a loss of 272.8 million dollars in 2016. For the full year, GAAP net loss from continuing operations was 535.3 million dollars compared to 254.5 million dollars in 2016.
Non-GAAP net income from continuing operations for the fourth quarter was 3.6 million dollars, an 84 percent decrease compared to 22.1 million dollars in the fourth quarter of 2016. Non-GAAP diluted EPS from continuing operations for the fourth quarter was 0.06 dollar compared to 0.39 dollar in the fourth quarter of 2016. Non-GAAP net income from continuing operations for the full year was 45 million dollars, a 34 percent decrease compared to 68.7 million dollars in 2016. Non-GAAP diluted EPS from continuing operations for 2017 was 0.78 dollar as compared to 1.31 dollars in 2016.