Iconix posts 31 percent drop in Q2 sales

Iconix Brand Group, Inc., for the second quarter, reported total revenue of 34.4 million dollars, a 31 percent decline, compared to the second quarter of 2018. The company said, such decline was expected, principally as a result of the transition of Danskin and Mossimo direct to retail licenses in women’s segment, while revenue was also impacted by the effect of the Sears bankruptcy on Joe Boxer and Bongo brands in women’s and the Cannon brand in home. For the six months ended June 30, 2019, total revenue was 70.3 million dollars, a 29 percent decline compared to same period ended June 30, 2018.

Commenting on the second quarter results, Bob Galvin, the company’s CEO said in a statement: “Results for the second quarter of 2019 were as expected, as we continue to stabilize the business and our operational cost structure. Our focus on the business and costs helped to improve our EBITDA margin to 59 percent from 49 percent in the prior year quarter. We also continue to build the pipeline of our future business, as we have signed 111 deals year to date for aggregate guaranteed minimum royalties of approximately 79 million dollars.”

Highlights of Iconix Brand Group’s Q2

The company’s men’s segment revenue decreased 37 percent primarily due to the Buffalo brand, while international segment declined 3 percent primarily as a result of performance in China.

Operating income for the quarter was 18.6 million dollars compared to operating loss of 94.6 million dollars in the second quarter of 2018. Adjusted EBITDA was 20.3 million dollars, which represents operating income of 18.6 million dollars, excluding net charges of 1.7 million dollars. Adjusted EBITDA was 24.6 million dollars, which represents operating loss of 94.6 million dollars.

Operating income for the six months was 37 million dollars compared to operating loss of 79.1 million dollars in the six months ended June 30, 2018. Adjusted EBITDA was 38.8 million dollars, which represents operating income of 37 million dollars, while adjusted EBITDA was 47.1 million dollars, which represents operating loss of 79.1 million dollars.

GAAP net income attributable to Iconix reflects income of 1.3 million dollars, compared to loss of 79.4 million dollars for the second quarter of 2018, while GAAP diluted EPS reflects income of 4 cents, compared to loss of 12.55 dollars for the second quarter of 2018. GAAP net income attributable to Iconix for the six months reflects income of 19.2 million dollars, compared to a loss of 51.7 million dollars for the six months ended June 30, 2018, GAAP diluted EPS reflects income of 10 cents compared to a loss of 9.06 dollars for the six months ended June 30, 2018.

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