Iconix reports 17 percent drop in Q2 revenues

For the second quarter of 2018, total adjusted revenue at Iconix Brand Group, Inc., the company said, was 50.2 million dollars, a 17 percent decline and for the six months ended June 30, 2018, total adjusted revenue was 98.8 million dollars, again a 17 percent decrease as compared the six months ended June 30, 2017. The company added that such decline was expected principally as a result of the transition of Danskin, OP and Mossimo DTR's in its women's segment.

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Commenting on the results, Peter Cuneo, Interim CEO and Chairman of the Iconix board said in a statement: "The highlight of the quarter was the announcement that our Iconic Brand, Starter, is returning to the football field through a collaboration with the Alliance of American Football Association, which is set to commence play in February 2019. In other news, we announced that a Cooperation Agreement has been reached with Sports Direct International pursuant to which Iconix has appointed Justin Barnes to our board."

Highlights of Iconix’s Q2 and H1 results

The company’s men's segment saw organic growth in the second quarter and through the six months primarily from the Umbro and Buffalo brands and international segment witnessed an organic growth from the Umbro and Lee Cooper brands. The home segment however declined 11 percent for the second quarter and six months.

GAAP net loss from continuing operations attributable to Iconix for the second quarter was 79.4 million dollars compared to 13.9 million dollars for the second quarter of 2017. GAAP diluted EPS from continuing operations for the second quarter was 1.26 dollars compared to 0.26 dollar for the second quarter of 2017. GAAP net loss from continuing operations attributable to Iconix for the six months was 51.7 million dollars compared to 9.1 million dollars in the six months ended June 30, 2017. GAAP diluted EPS from continuing operations for the six months was 0.91 dollar compared to 0.19 dollar for the same period last year.

Non-GAAP net income from continuing operations for the second quarter was 7.7 million dollars compared to 15.2 million dollars for the second quarter of 2017. Non-GAAP diluted EPS from continuing operations for the quarter was 0.12 dollar compared to 0.26 dollar for the same quarter of 2017. Non-GAAP net income from continuing operations for the six months was 13.8 million dollars compared to 27.9 million dollars for the six months ended June 30, 2017 and non-GAAP net income from continuing operations for the period was 0.22 dollar compared to 0.48 dollar for the six months ended June 30, 2017.

Iconix expects revenues to be at lower end of FY18 guidance

The company said, it is anticipating lower end of full year revenue guidance of 190 million dollars to 220 million dollars. The company expects GAAP net income guidance now a loss of approximately 94.4 million dollars to 104.4 million dollars, due to a Q2 trademark and goodwill impairment. The company is anticipating low end of full year non-GAAP net income guidance of 20 million dollars to 30 million dollars.

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