Print Page  Close Window

8-K
ICONIX BRAND GROUP, INC. filed this Form 8-K on 11/09/2018
Entire Document
 << Previous Page | Next Page >>

 

Exhibit 99.1

 

Iconix Reports Financial Results For The Third Quarter 2018

 

 

NEW YORK, Nov. 9, 2018 /PRNewswire/ --

  • Sears' bankruptcy adversely affecting Company's financial performance
  • International business continues to outperform expectations
  • Projecting stable cash position and debt covenant compliance

Iconix Brand Group, Inc. (Nasdaq: ICON) ("Iconix" or the "Company") today reported financial results for the third quarter ended September 30, 2018.

 

Bob Galvin, CEO commented, "Our results for the quarter were negatively impacted by the Sears bankruptcy filing which resulted in P&L charges, however, we continue to forecast debt covenant compliance. While the domestic business did not see the progress we had hoped for, our international business continued its profitable growth. We are critically evaluating our operational cost structure to ensure it is aligned with our current level of business and near term plans."

 

Unless otherwise noted, the following represents financial results for continuing operations only.

 

Third Quarter 2018 Financial Results

 

GAAP Revenue by Segment  Three months ended September 30,   Nine months ended September 30, 
($, 000's)  2018   2017   % Change   2018   2017   % Change 
                         
Womens   15,201    21,043    -28%   48,670    76,820    -37%
Mens   7,282    11,393    -36%   27,752    31,568    -12%
Home   7,060    7,515    -6%   20,533    22,676    -9%
International   16,681    13,214    26%   48,029    42,471    13%
Total Revenue   46,224    53,165    -13%   144,984    173,535    -16%

 

For the third quarter of 2018, total revenue was $46.2 million, a 13% decline as compared to $53.2 million in the prior year quarter. For the nine months ended September 30, 2018, total revenue was $145.0 million, a 16% decline as compared to $173.5 million in the nine months ended September 30, 2017.  Such decline was expected, principally as a result of the transition of our Danskin, OP and Mossimo DTR's in our Womens segment, as previously announced.

 

Our Mens segment declined in the third quarter of 2018 primarily from the Starter and Buffalo brands.  Our International segment provided organic growth primarily from the Umbro and Lee Cooper brands, specifically in the Europe, India and China territories.  The Home segment declined 6% and 9% for the third quarter of 2018 and nine months ended September 30, 2018, respectively. As previously discussed, revenue in the Home segment year-over-year is partially down due to the terms of a renewal of the Waverly Inspirations contract with Walmart.

 

In the first quarter of 2018, the Company adopted a new revenue recognition accounting standard (ASU No. 2014-09 Revenue from Contracts with Customers – Topic 606). Adoption of the standard increased Q3 2018 revenue by approximately $2.4 million and increased revenue for the nine months ended September 30, 2018 by approximately $0.6 million, and is expected to increase full-year 2018 revenue by approximately $2.5 to $3.0 million.

 

 

 << Previous Page | Next Page >>