Iconix Brand revenue declines 18% to $42.7 mn in Q4 2018

The decline in revenue was expected by the company as a result of the transition of the Danskin, OP and Mossimo brands’ direct to retail licenses in the Womens segment, said Iconix in a press release. The company’s Mens segment revenue increased 38 per cent in Q4 of 2018 as compared to the prior year quarter primarily from the Umbro, Ecko and Buffalo brands although the Mens segment declined 2 per cent for 2018 mostly as a result of the transition of the Starter brand from Walmart to Amazon.

The company saw continued growth internationally as segment revenue was up 10 per cent from the prior year, primarily based on the performance of its brands in China, Europe and India. Iconix signed 83 license deals over the last six months, representing $45 million of aggregate guaranteed minimum royalties through the life of the agreements for the next several years.

“We have finalised our review of business and operational goals and objectives and we have put our plan into effect. As a result, we have reduced our operational cost structure by approximately $30 million to align with our plan,” said Bob Galvin, CEO, Iconix. “On the business front, the quarter was negatively impacted by the Sears bankruptcy, while our international business continued to demonstrate strong growth. We continue to build the pipeline of our future business, as we have signed 83 deals over the last six months for aggregate guaranteed minimum royalties of approximately $45 million through the life of the agreements for the next several years.”

For the full year of 2019, the company has given revenue guidance of $145—$160 million. (PC)

Fibre2Fashion News Desk – India