Iconix Brand reports revenue of $22 mn in Q2 FY20

13 Aug '20

2 min read

Pic: Iconix Brand/ Buffalo David Bitton

Iconix Brand Group, a US-based premier brand management company, reported 35 per cent revenue decline to $22.3 million in its second quarter (Q2) fiscal 2020 ended on June 30, 2020 compared to revenue of $34.3 million in same period last year. Company incurred a net loss of $15.6 million compared to net income of $3.4 million in Q2 FY19.

“With the onset of Covid-19 during the first quarter, we quickly responded to remove costs and preserve liquidity,” Bob Galvin, CEO at Iconix Brand, said in a press release. “During the second quarter while we continued those efforts, we also continued to develop our pipeline of future business, as we have signed 92 deals during 2020 for aggregate guaranteed minimum royalties of approximately $69 million.”

Selling, general and administrative expenses during Q2 FY20 were $14.9 million (Q2 FY19: $16.4 million). Operating income decreased to $3.5 million ($18.6 million).

During the quarter, revenues of women’s segment slipped 46 per cent to $4.4 million ($8.1 million) due to decrease in licensing revenue from Mudd and Candies brands. Men’s segment revenue fell 55 per cent to $2.9 million ($6.6 million) due to a decrease in licensing revenue from our Buffalo and Umbro brands.

“In late July, we closed the previously announced sale of Umbro China and realised net proceeds of over $59 million,” Galvin said.

Sales in home segment dropped 12 per cent to $3.7 million ($4.2 million) due to decrease in licensing revenue from Cannon brand. While international segment revenue were down 27 per cent to $11.1 million ($15.3 million) mainly due to decreases in Latin America and Europe.

“As we move forward, if we experience a slower recovery, or if further disruptions occur later in the year, we will be vigilant in an attempt to identify additional areas for cost savings,” Galvin said.

Fibre2Fashion News Desk (JL)

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