Sequential Brands Group today reported third-quarter results before the market open that surpassed forecasts.
The New York-based owner of the Jessica Simpson collection, Joe’s denim, William Rast and other popular footwear and apparel brands posted revenue growth of 83 percent, to $42 million during the quarter.
Reported net income slipped 52 percent year-over-year, to $1.3 million, or 2 cents per diluted share. However, adjusted net income climbed 50 percent year-over-year, to $7.5 million, or 12 cents per diluted share, topping forecasts for diluted earnings per share of 11 cents.
“Our business activation team is executing and our portfolio brand health is solid, driven by strong contributions from our core brands Jessica Simpson, William Rast and Heelys, as well as from recently acquired brands including Joe’s Jeans, Martha Stewart, Chef Emeril and Gaiam,” Sequential CEO Yehuda Shmidman said in a statement.
The company reaffirmed its full-year revenue guidance but downward adjusted its net income forecast due to cost associated with its headquarters lease. Sequential continues to expect full-year revenues of $155 million to $160 million but is now expecting GAAP net income of $7.7 million to $11 million and Adjusted EBITDA of $83 million to $88 million.
“Looking ahead, we will invest in strategic areas that we believe are essential to our long-term growth,” Shmidman said. “These include building on our international momentum, expanding our digital presence by aligning with e-commerce partners that can significantly propel our brands forward, and continuing to invest in our brands to develop products and support key partnerships so that they remain at the top of consumers’ minds.”