Iconix Brand Group Inc
) touched a new 52-week high of $29.59 on May 13 following the
announcement of solid first quarter 2013 results and an upbeat
2013 guidance on Apr 24, 2013. A number of accretive acquisitions
made in the recent past also fueled the rise in stock prices.
Shares of this Zacks Rank #1 (Strong Buy) stock previously
touched a 52-week high of $29.45 on May 3.
Iconix's share prices closed at $29.32 on May 13, recording a
healthy return of 30.4%, year-to-date. The company's long-term
estimated EPS growth rate is 13.05%. Average volume of shares
traded over the last three months came in at approximately
Solid First Quarter Performance
Iconix first quarter 2013 earnings of 54 cents per share beat
last year's result by 26% and the Zacks Consensus Estimate by
5.9%. Iconix's revenues in the quarter surged 19% year over year
and also surpassed the Zacks Consensus Estimate by 4%. The
company's acquisitions of iconic brands helped the company
deliver a solid performance. Following solid first quarter 2013
earnings, Iconix raised its 2013 adjusted earnings guidance to
$2.10-$2.20 per share from the previously announced range of
$2.05-$2.15 per share.
Iconix successfully completed three acquisitions in the past
five months. In late-Feb 2013, Iconix acquired the renowned
lifestyle brand Lee Cooper, which includes multiple lifestyle
categories including men's and women's casual wear, footwear and
accessories. In early-Feb 2013, Iconix formed a joint venture
with Buffalo International ULC to acquire 51% interest in the
latter's Buffalo David Bitton brand in order to expand its retail
footprint in the U.S. and Canada. In early-Dec 2012, Iconix
acquired the renowned football brand Umbro from
) to further strengthen its portfolio with an iconic brand that
focuses on the fashion, athletics, electronics, entertainment and
We remain impressed with Iconix's strategic acquisitions and
consistent expansion of licensing agreements. Iconix expects to
explore additional opportunities and enhance its portfolio with
more iconic brands in the upcoming quarters and deliver over 20%
revenue and earnings per share growth for 2013.
Other Stocks to Consider
Other stocks in the consumer discretionary sector that are
performing well and are therefore worth considering include
), both of them carrying a Zacks Rank #2 (Buy).
FRANCESCAS HLDG (FRAN): Free Stock Analysis
HANESBRANDS INC (HBI): Free Stock Analysis
ICONIX BRAND GP (ICON): Free Stock Analysis
NIKE INC-B (NKE): Free Stock Analysis Report
To read this article on Zacks.com click here.