US brand management firm Iconix Brand Q1 FY21 sales fall 15% to $24 mn

14 May '21

2 min read

Pic: Iconix Brand/ Mudd

Iconix Brand Group, a US-based premier brand management company, has recorded 15 per cent revenue decline to $23.6 million in its first quarter (Q1) FY21 ended on March 31, 2021, compared to the revenue of $27.9 million in the corresponding quarter previous fiscal. The company’s net income for the quarter was $6.9 million (Q1 FY20: loss $21.0 million).

“While we and our licensees continue to deal with many pandemic-related challenges, we have continued to focus on realising the opportunity that exists for our brands through building our pipeline of future business. By doing so, we have had a very strong start to the year,” Bob Galvin, CEO at Iconix Brand, said in a press release.

Selling, general and administrative expenses for Q1 FY21 were $13.0 million ($17.1 million). Operating income rose to $25.3 million (operating loss: $4.8 million).

Revenues for women’s segment for the reported period plunged 41 per cent to $3.8 million ($6.5 million) due to decrease in licensing revenue from our Mudd, Candies and Joe Boxer brands partially offset by an increase in our Danskin brand. Whereas, men’s segment revenue fell 17 per cent to $5.6 million ($6.7 million) due to decrease licensing revenue from our Buffalo brand.

Home segment sales slipped 22 per cent to $2.4 million ($3.1 million) due to an increase in licensing revenue the company’s Fieldcrest brand. On the contrary, international segment revenue marginally grew 2 per cent to $11.7 million ($11.5 million) due to increase in licensing revenue of Europe.

“Year to date, we have signed 93 license agreements representing $47 million of aggregate minimum royalties over the life of these contracts. This represents a 127 per cent increase in the numbers of deals signed versus last year to date and a 98 per cent increase in the amount of minimum royalties. This performance is due to the continued dedication and hard work of our team,” Galvin said.

Fibre2Fashion News Desk (JL)

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