Hurt by softness in the men’s business and challenges with Royal Velvet, Iconix Brand Group Inc. posted declines for both the fourth quarter and full year. However, spurred by the acquisition announced today of the Lee Cooper brand, the firm raised its 2013 guidance.
For the period ended Dec. 31, 2012, Iconix reported income of $26.1 million, or 37 cents a diluted shared, compared with $27.2 million, or 36 cents, in the year-ago period.
Total revenue for the period was $85.1 million, compared with $95.5 million the previous year.
For the full year, net income was $109.4 million, or $1.52 a share, as compared with $126.1 million, or $1.67, for the prior year. Revenue fell to $353.8 million, from $369.8 million a year ago.
“Over the past year we have executed several exciting initiatives that position our company for significant growth,” Neil Cole, chairman, president and CEO of Iconix, said in a statement. “Looking to 2013 and beyond, with our powerful portfolio of over 30 brands that are well diversified across numerous industries and geographies, along with our strong balance sheet and financial flexibility, we look forward to delivering continued growth and value to our shareholders.”
For the full year 2013, Iconix raised its revenue guidance to $425 million to $435 million, from $415 million to $425 million, and boosted its diluted EPS guidance to $1.95 to $2.05, from $1.90 to $2.
“For 2013, we believe we are on track to deliver approximately 20 percent growth on both the top and bottom line, and we hope we can continue to execute on both organic initiatives and acquisition strategy,” Cole said on a call with analysts. “We will achieve growth levels similar to [what] we’ve achieved over the past seven years, and we look forward to continuing to deliver strong growth and value to our shareholders.”