Sequential Posts Triple-Digit Revenue Gains, Beats Street Forecast

Jessica Simpson collection
Jessica Simpson, wearing her own collection head-to-toe.
Courtesy photo

New York-based brand-management firm Sequential Brands Group Inc. posted Q1 revenues today that beat Wall Street’s forecasts and were over 100 percent higher than revenues in the year-ago quarter. The company, which recently acquired the Jessica Simpson brand, said it will continue to focus on both organic and acquisition-based growth in the year ahead.

Net Income: GAAP earnings for the first quarter, ended March 31, 2015, totaled $1.4 million, up from last year’s Q1 GAAP earnings of $742,000.

EPS: Earnings per diluted share were 4 cents — up one penny year-over-year.

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Net Revenue: Net revenues for Q1 were up 117 percent year-over-year, to $13.6 million. The firm posted revenues of $6.3 million in the prior year’s first quarter.

Adjustments: Earnings per diluted share, adjusted for non-recurring gains, were 3 cents (non-GAAP).

Hit, Miss or Beat: The licensing and brand-management company’s performance was a beat on Wall Street’s estimates for the quarter. Analysts polled by Yahoo Finance had predicted revenues of $10.99 million, while the company posted revenues of $13.6 million.

Executive Insights: “We are pleased to begin 2015 with a strong quarter and the recently announced acquisition of a majority interest in the Jessica Simpson brand. Core to our growth strategy is that we are focused on executing on our playbook of both organic and acquisition growth, and our recent results and future plans reflect this strategy.” – Sequential CEO Yehuda Shmidman

Looking Ahead: For the year ending Dec. 31, 2015, the company said it is reiterating revenue guidance of $78 million to $81 million. Consistent with the company’s historical quarterly results, Sequential said it expects revenue for 2015 to be weighted to the third and fourth quarters due to “seasonality in the businesses of many of the company’s licensees.”