Iconix Brand Group gains profit in Q3, revenues drop 31 percent

Iconix Brand Group, Inc. total revenue for the third quarter was 24.5 million dollars, a 31 percent decline, compared to the same quarter of 2019. The company said, revenue across all segments was primarily negatively impacted by the effects of the Covid-19 pandemic on the global economy. GAAP net income attributable to Iconix reflected income of 45.7 million dollars compared to a net loss of 35.7 million dollars for the third quarter of 2019 and GAAP diluted EPS for the third quarter reflected income of 1.51 dollars per share compared to loss of 3.07 dollars per share for the third quarter of 2019.

Commenting on the third quarter trading, Bob Galvin, the company’s CEO said in a statement: “Despite Covid-19, we continued to expand our business, including a successful launch of Umbro products in Walmart. We have remained focused on building our pipeline of future business, as a result, we have signed 148 deals during 2020 for aggregate guaranteed minimum royalties of approximately 90 million dollars.”

Iconix added that 43 percent decrease in revenue in the women’s segment was as a result of a decrease in licensing revenue from Mudd and Joe Boxer brands, while revenue from the men’s segment decreased 28 percent due to a decrease in licensing revenue from Buffalo and Umbro brands. Sales in the Home segment improved 2 percent due to an increase in licensing revenue from Charisma brand, while international segment revenue declined 32 percent due to decreases in Latin America and Europe.

The company further said that operating income for the quarter was 66.4 million dollars compared to operating loss of 8.1 million dollars for the third quarter of 2019, while adjusted EBITDA was 13.7 million dollars compared to 20.9 million dollars last year. Adjusted EBITDA margin in the third quarter of 2020 was 56 percent compared to 59 percent.

Picture:Facebook/Umbro