Iconix Brand Group Inc.’s first-quarter earnings fell 5 percent, but the company called the rollouts of OP, Starter and Danskin Now at Wal-Mart stores a success and upped its outlook for the year.
Profits dropped to $15.6 million, or 26 cents a diluted share, from $16.5 million, or 27 cents, a year ago. Revenues for the three months ended March 31 declined 9 percent to $50.5 million from $55.7 million. Iconix boosted its profit projection for the year to $1.16 to $1.21 a share from $1.06 to $1.16.
Emphasizing that the introductions at Wal-Mart drove results for the quarter, Neil Cole, chairman and CEO, said the company was looking at some larger acquisitions this year.
On Tuesday, Iconix reported it inked a deal to acquire 50 percent of Ed Hardy owner Hardy Way LLC for $17 million. Royalty revenue from Hardy Way is expected to be about $10 million in 2009.
For more coverage, see Monday’s issue of Footwear News.