“In this past quarter, brand growth from all three of our verticals was ahead of plan, and as such, we expect to exceed our organic growth target for the year,” said Yehuda Shmidman, Sequential’s CEO, in a release. “In addition, we are continuing to execute our acquisition strategy, as demonstrated by the recent closing of Joe’s Jeans, and the pending merger with Martha Stewart Living Omnimedia, expected to close before year end. This is a pivotal time for Sequential, and as we move closer to the holiday season and into 2016, we believe we are positioned for continued growth, with a winning business model and a strong activation platform.”
The company — which acquired a majority stake in the billion-dollar Jessica Simpson brand earlier this year — also upped its guidance for the fiscal year off the growing momentum.
Net Income: Total income for the third quarter ended September 30, 2015 increased 3.1 percent to $2.7 million, compared to $2.6 million in the prior year quarter.
EPS: Earnings per diluted share were 6 cents per share compared to diluted EPS of 8 cents in the comparable quarter.
Net Revenue: Sales increased 130 percent to $23 million, compared to $10 million in the prior year quarter.
Hit, Miss or Beat: Sequential’s performance was mixed against market watchers’ estimates. Analysts polled by Yahoo Finance had predicted EPS of 10 cents and revenues of $21.5 million.
Looking Ahead: The company is increasing its projected revenue range from $78 million to $81 million to a new range of $81 million to $83 million and is increasing its projected adjusted EBITDA range from $48.5 million to $50.5 million to $50 million to $52 million. This guidance does not include the pending impact of the acquisition of Martha Stewart Living Omnimedia.