Iconix Brand Group Inc. today reported Q2 earnings after the market close that topped market watcher’s expectations for sales and profit.
The brand management firm, which owns and manages labels such as Candie’s, London Fog and Umbro, said it second-quarter reported net income declined 16 percent to $11.6 million, or 23 cents per diluted share, from $13.7 million, or 28 cents per diluted share in the second quarter of 2015. Adjusted net income was $13.9 million, or 27 cents per diluted share, a 35 percent decline from the comparable period when net income wad $21.3 million, or 43 cents per diluted share. Despite the decline, the results beat analysts’ predictions for diluted earnings per share of 23 cents.
Licensing revenue slipped 2 percent, to $95.7 million, from $97.4 million in the comparable period. It was a modest beat on estimates for Q2 licensing revenue of $95.2 million.
Iconix CEO John Haugh said he was “pleased” with the firm’s “solid results” and, after a tough year, is focused on continuing to improve the company’s financials.
“Our primary goal is to position ourselves to achieve growth while at the same time improving the balance sheet, and we are making progress on both of those fronts,” Haugh said in a release. “Over the past few months, we have conducted a broad strategic review of our company, our brands and the overall market. We have identified a number of opportunities that we believe will drive long-term growth that we look forward to sharing with you this fall.”
He added, “Today our balance sheet is in a better position than it was a few months ago, following the refinancing of our 2016 convertible notes and the opportunistic repurchase of a portion of our 2018 convertible notes.”
In June, Iconix announced it had pared down its 2016 guidance to reflect its repurchase of $105 million in outstanding convertible notes. Prior to that, in March, Iconix said it secured a $300 million loan to help it pay off convertible senior subordinated notes due June 2016.