Iconix Brand Group is embattled yet again.
The brand management firm saw its stock tumble more than 13 percent to $1.71 on Wednesday morning after posting full-year revenues that declined 17 percent to $187.7 million from the prior-year period. Still, the firm narrowed its losses to $100.5 million, or $15.73 per diluted share, from the previous year, when losses were $489.3 million, or $86.65.
In the fourth quarter, sales dropped 18 percent to $42.7 million, largely due to the transition of the company’s Danskin, OP and Mossimo brands’ direct-to-retail licenses in the women’s segment. That figure was weaker than Wall Street’s anticipated $44.7 million in sales. For the period, Iconix posted a net loss of $69.1 million, or $9.75 per share, compared with profits of $24.1 million or $3.97 in the year-ago period.
Separately, the international business was up 10 percent from the previous year, bolstered by the performance of its brands in China, Europe and India.
Iconix’s earnings report also addressed the firm’s struggle following Sears’ demise. The legacy department store chain, which filed for bankruptcy in October, continued to shutter doors and sell stores through the rest of the year, as chairman Eddie Lampert sought a restructuring plan through his namesake hedge fund, ESL Investments Inc.
“On the business front, the quarter was negatively impacted by the Sears bankruptcy, while our international business continued to demonstrate strong growth,” said CEO Bob Galvin. “We continue to build the pipeline of our future business.”
Along with Sears, Iconix’s brands are available in stores including Kohl’s, Macy’s and J.C. Penney — all of which had notable misses during the all-important two-month stretch at the end of 2018. As shifting consumer behavior and the rise of e-commerce continue to change the face of retail, an increasing number of department store chains have trimmed down their physical footprints and invested more resources in online marketplaces.
Iconix announced revenue guidance of $145 million to $160 million for 2019.
Watch FN’s video with Keds’ CEO below.
Iconix Pays Off $362 Million Debt After Sale of Peanuts & Strawberry Shortcake Brand
How Can Sears Stay Viable in the Long Run?