Iconix Brands Raises Guidance on Strong Q1

Iconix Brands Raises Guidance on Strong
Nina Agdal, Josh Henderson and Cailin Russo in a spring ’14 ad for Op

Shares of Iconix Brand Group Inc. soared almost 7 percent in afternoon trading after the company released better-than-expected results for the first quarter.

Iconix reported non-GAAP diluted earnings per share for the period of 72 cents, up 33 percent from 54 cents a year earlier.

Analysts polled by Thomson Reuters expected EPS of 63 cents.

Revenue for the quarter rose 11 percent to $116.1 million, from $105.1 million a year earlier.

Iconix COO Seth Horowitz said on a conference call with investors and analysts that the company has experienced a robust start to the year.

“2014 is off to strong start, with revenue up double digits in the first quarter,” he said on the call.

“There are two divisions that are key growth vehicles for Iconix: sports and entertainment. Both of these divisions drive global revenue with a strong asset for the future,” he added, noting that the two segments could account for 45 percent of the company’s business this year. 

Based on the quarterly result, Iconix lifted its full-year non-GAAP diluted EPS guidance to between $2.55 and $2.65, from its earlier forecast of between $2.50 and $2.60.

The company raised its full-year revenue guidance to between $450 million and $460 million, from $440 million to $455 million.

Neil Cole, Iconix chairman and CEO, said in a statement that the company will continue to expand its global footprint across its portfolio of brands, which include shoe labels Candie’s and Ecko Unltd.

“As we look ahead, we believe we can continue to deliver significant value to our company and shareholders through a combination of organic growth, driven by international expansion … as well as [through] additional acquisition of global iconic brands.”

On the performance of specific brands, Horowitz said, “Heading into the spring/summer season, Op has picked up momentum at Walmart with strong swimwear and footwear sales.”

Iconix shares were $2.58 higher, at $42.43, in afternoon trading on Wednesday.