Iconix Brand Group, Inc.
) posted fourth quarter 2012 adjusted earnings of 41 cents per
share, flat compared to the year-ago quarter. The results were
ahead of the Zacks Consensus Estimate of 38 cents by 7.8%.
Quarter in Detail
Total revenue in the quarter declined 10.9% year over year to
$85.1 million, due to year-over-year decline in the Men's
businesses and transition of the Royal Velvet license. However,
revenue surpassed the Zacks Consensus Estimate of $83
On a year-over-year basis, earnings before interest, taxes,
depreciation, and amortization (EBITDA) decreased 12.7% to $50.0
million in the fourth quarter.
Iconix exited the quarter with free cash flow of $37.9
million, compared with $43.2 million at the end of the third
quarter of 2012. In anticipation of full use of the $200 million
share repurchase program which was authorized in October 2011,
Iconix has announced a new share repurchase program to repurchase
up to $300 million of its common stock over a three-year
Full Year 2012 Results
For the full year 2012, Iconix posted adjusted earnings of
$1.70 per share, up a penny from the year-ago level. The results
were ahead of Zacks Consensus Estimate of $1.66 by 2.4%.
Total revenue in the year declined 4.3% from 2011 to $353.8
million. Revenue also surpassed the Zacks Consensus Estimate of
On Feb 20, 2013 Iconix acquired the renowned lifestyle brand
Lee Cooper for $72 million in cash through the company's
Luxembourg subsidiary, Iconix Luxembourg Holdings Sarl. The
acquisition will strengthen its brand portfolio and also help
Iconix to expand in important international markets, which now
account for 33% of its overall business.
In Feb 2013, Iconix formed a joint venture with Buffalo
International ULC to acquire a 51% interest in the latter's
Buffalo David Bitton brand for $76.5 million in cash. According
to the deal, Buffalo International will be the core licensee for
the joint venture. Iconix will control the joint venture, manage
the brand's operations and expand its retail footprint in the
U.S. and Canada.
The brand offers denim, sportswear, activewear, and
accessories that are primarily sold through 3000 department
) and specialty store locations in over 18 countries around the
world. It also has 30 standalone retail stores, mainly in
Again, in early-Dec 2012, the company added sports apparel and
footwear brand, Umbro from its peer
) to further strengthen its diversified portfolio.
To account for the effect of the acquisition of Lee Cooper,
Iconix raised its 2013 adjusted earnings guidance to $2.05-$2.15
from the previously announced range of $2.00-$2.10. Iconix also
raised its revenue guidance to $425-$435 million from $415-$425
million. Currently the stock carries a Zacks Rank #3 (Hold).
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