Sequential Brands Group today posted earnings for first quarter 2016 (ended March 31) that topped market watchers’ estimates.
The brand management firm, which owns and manages labels such as Jessica Simpson, Heelys and And 1, reported a net loss of $1.1 million for the quarter, or 2 cents per diluted share, compared with net income of $1.4 million, or 4 cents per diluted share, in last year’s same period. On a non-GAAP basis, net income for the quarter was $2.5 million, or 4 cents per diluted share, compared to $1.3 million, or 3 cents per diluted share, in the prior-year quarter. It was a beat on analysts’ predictions for diluted earnings per share of 0 cents.
Q1 revenues for the firm, which acquired Martha Stewart Living Omnimedia last year, grew 150 percent to $34 million, compared with revenue of $13.6 million in the prior year quarter. Market watchers had expected revenues of $27.4 million.
“Our 2016 fiscal year is off to a strong start, driven by a combination of contributions from the brands acquired in 2015 and increased revenues from the balance of our portfolio,” said Sequential CEO Yehuda Shmidman in a release. “We are on track to achieve high-single-digit organic growth for full year 2016 and remain focused on executing our activation playbook.”
In addition to the Martha Stewart business, Sequential acquired Joe’s Jeans and the Jessica Simpson brand in 2015.
The firm reiterated its 2016 guidance and continues to expect $145 to $150 million in revenues and adjusted EBITDA of $83 million to $87 million.