Sequential Brands Group Q1 sales increase 16 percent

Sequential Brands Group revenues for the first quarter ended March 31, 2017 increased 16 percent to 39.4 million dollars, compared to 34 million dollars in the prior year quarter. On a GAAP basis, the company’s net loss was 1.2 million dollars or 0.02 dollar per diluted share compared to a net loss for the first quarter 2016 of 1.1 million dollars or 0.02 dollar per diluted share.

"We started the year off strong with solid results in the first quarter and several new organic growth initiatives underway," said Karen Murray, CEO of Sequential Brands Group in a press release, adding, “Going forward, our top priority is implementing new revenue initiatives across all of our brands, while maintaining a disciplined approach to expense management."

The company reaffirms FY17 outlook

For the year ending December 31, 2017, the company is reiterating guidance of 170 million dollars to 175 million dollars in revenue and 98 million dollars to 102 million dollars of adjusted EBITDA. The Company's GAAP net income is now expected to be 15.5 million dollars to 18.1 million dollars, which the company said was due to costs associated with the departure of the company's CEO.

The company also entered into a new multi-year agreement with QVC for the Martha Stewart brand. The partnership is expected to launch in the second half of this year and will include categories such as fashion apparel, skincare and food and beverage. The collaboration will also feature appearances on QVC by Martha Stewart and a select team of her lifestyle experts.

Non-GAAP income for the quarter was 5.9 million dollars or 0.09 dollar per diluted share, compared to 2.5 million dollars or 0.04 dollar per diluted share, in the prior year period. Adjusted EBITDA was 23 million dollars, compared to 16.7 million dollars in the prior year quarter.

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