Iconix Brand Group posts 22 percent drop in Q1 sales

For the first quarter of 2020, total revenue at Iconix Brand Group, Inc. was 28 million dollars, a 22 percent decline, compared to 35.9 million dollars in the first quarter of 2019. The company said in a statement that revenue across all segments was negatively impacted by the effects of the Covid-19 pandemic on the global economy. The company reported a loss of 21.5 million dollars, compared to income of 17.9 million dollars and loss per share of 1.86 dollars, compared to a loss of 0.01 cents for the first quarter of 2019.

Commenting on the results, Bob Galvin, the company’s CEO said: “While we began 2020 focused on the continued stabilization of our business and our operational cost structure, the Covid-19 pandemic has had a meaningful near-term impact on our business and that of our licensees. We have achieved over $10.0 million of annualized cost removal actions, including reductions in headcount and the elimination of all non-essential operating expenses. Even with this disruption, we signed 41 deals during 2020 for aggregate guaranteed minimum royalties of approximately 24 million dollars.”

Review of Iconix Brand Group’s first quarter performance

The company added that 23 percent decrease in revenue in the women’s segment was principally as a result of a decrease in licensing revenue from Mudd brand. Revenue from the men’s segment decreased 38 percent to 6.8 million dollars due to a decrease in licensing revenue from Buffalo and Umbro brands. Sales in the home segment declined 9 percent due to a decrease in licensing revenue from Royal Velvet brand, while international segment revenue declined 12 percent due to decreases in Latin America and Europe.

Operating loss for the quarter was 4.9 million dollars, as compared to operating income of 18.4 million dollars for the first quarter of 2019. Adjusted EBITDA was 11.6 million dollars, compared to 18.4 million dollars for the first quarter of 2019, while adjusted EBITDA margin was 42 percent compared to 51 percent in the same quarter last year.

Picture:Facebook/Mudd