Iconix Brand Group today reported third-quarter earnings before the market open that topped market watchers’ forecasts. However, some challenges from the previous year continue to hinder the company’s growth.
The brand management firm — which owns Candie’s, London Fog, Material Girl and other brands — said its third quarter reported net income soared to $15.2 million, or 27 cents per diluted share, compared to a net loss of $5.4 million, or 11 cents per diluted share in the previous year. Adjusted net income also advanced 114 percent year-over-year, to $11.1 million, or 19 cents per diluted share, surpassing forecasts for diluted earnings per share of 16 cents.
“Performance across the brands was mixed, but with our balanced portfolio of brands and the company’s attractive margins, we were able to achieve stable revenue, increased profits and healthy free cash flow,” Iconix CEO John Haugh said in a release. “We look forward to sharing details about our vision and our growth plan at our upcoming investor day next Tuesday, November 15th.”
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The firm’s licensing revenues remained flat year-over-year, at $90.9 million.
Iconix, which spent much of 2015 grappling with top executive departures as well as a U.S. Securities and Exchange Commission investigation, is continuing to feel the effects of previous operational challenges. The company said it now expects reported 2016 EPS to be approximately 4 cents below its previous guidance range of 93 cents to $1.08 due to higher than expected professional fees associated with the SEC investigation.
Iconix also downward adjusted its full-year revenue guidance. The company now expects revenue to be $3 million to $5 million below its previously expected estimate, which was at the low end of its $370 million to $390 million guidance.
Iconix continues to expect adjusted EPS in the range of $1.06 to $1.21, but is trending toward the low end of the range.
