Iconix Brand Group Inc. today posted earnings for first quarter 2016, which ended March 31, and the results topped Wall Street’s forecasts.
The New York-based brand management firm said its reported net income for the quarter declined 72 percent, to $18.6 million, or 37 cents per share, from $65.4 million, or $1.26 per diluted share in the prior year’s same period. On a non-GAAP basis, earnings per diluted share were 53 cents compared with 54 cents in the prior year quarter. Analysts were expecting diluted EPS of 41 cents.
Iconix, which owns and manages brands such as Candie’s, Ed Hardy and Material Girl, said its Q1 licensing revenues totaled $94.6 million, a 1 percent decline from the comparable quarter when licensing revenues were $95.8 million.
John Haugh, the firm’s newly appointed CEO, said he is bullish on the company’s future after a tough 2015, during which Iconix saw its CEO, CFO and COO depart within a matter of months.
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“I am pleased with our results today and that we remain on track to achieve the guidance that the company provided last quarter,” Haugh said in a release. “Overall, our portfolio of brands remains healthy with solid businesses across the women’s and home segments, a growing entertainment platform and a stabilizing men’s business.”
Iconix, which restated its financial earnings for several quarters, earlier this year following a “comment letter” process with the U.S. Securities & Exchange Commission and maintained its 2016 full-year guidance.
“In the almost two months I have been at Iconix, I have spent my time understanding our business and each brand in our portfolio, assessing our marketing capabilities and strategy, meeting with many of our customers and our licensees and working toward crafting our go forward strategy,” Haugh said. “It is clear to me that with a diversified portfolio of over 30 brands, and over 1,700 licenses worldwide, Iconix is well positioned as the industry leader to further leverage and monetize our brands and our global licensing platform.”
During the last few months, Iconix sold the Badgley Mischka brand as well as its interest in musician Pharrell Williams’ company BBC Ice Cream LLC. Mark Badgley, James Mischka and partner Titan Industries Inc. purchased the Badgley Mischka brand in March, while Williams and his partners repurchased Iconix’s interest in the BBC and Ice Cream brands in January.