- Prachi Singh |
For the fourth quarter of 2018, total revenue at Iconix Brand Group, was 42.7 million dollars, an 18 percent decline, while for the full year, total revenue was 187.7 million dollars, a 17 percent decline over the prior year. For fiscal 2019, the company projects revenue in the range of 145 million dollars to 160 million dollars, GAAP operating income of 73 million dollars to 83 million dollars and adjusted EBITDA of approximately 70 million dollars to 80 million dollars.
Commenting on the results, Bob Galvin, the company’s CEO said in a statement: “We have reduced our operational cost structure by approximately 30 million dollars to align with our plan. 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 dollars through the life of the agreements for the next several years.”
Iconix Brand Group: Q4 net loss widens
The company said, such revenue decline was expected, as a result of the transition of Danskin, OP and Mossimo direct to retail licenses in the womens segment. The company added that revenue was also impacted by the effect of the Sears bankruptcy on Joe Boxer & Bongo brands in womens and the cannon brand in home. Men’s segment revenue increased 38 percent in the fourth quarter driven by Umbro, Ecko and Buffalo brands, however the mens segment declined 2 percent for 2018 as a result of the transition of the Starter brand from Walmart to Amazon. Iconix said, international segment grew for both the quarter and the year primarily based on the performance of its brands in China, Europe and India.
Operating loss for the fourth quarter was 52.1 million dollars compared to 18.3 million dollars in the fourth quarter of 2017, while adjusted EBITDA was 11.9 million dollars compared to 18.9 million dollars in 2017. Operating loss for the full year was 119 million dollars compared to 564.7 million dollars in 2017, while adjusted EBITDA was 74.6 million dollars compared to 117.7 million dollars.
GAAP net loss from continuing operations attributable to Iconix for the fourth quarter was 69.1 million dollars compared to income of 24.7 million dollars for the fourth quarter of 2017, while GAAP diluted EPS was a loss of 9.75 dollars compared to income of 3.97 dollars for the fourth quarter of 2017. GAAP net loss from continuing operations for the full year was 100.5 million dollars compared to a loss of 535.3 million dollars for 2017, while GAAP diluted EPS from continuing operations reflects a loss of 15.73 dollars compared to a loss of 94.71 dollars for the full year 2017.