Iconix Boosts Fourth-Quarter Net 24 Percent, Forms India Joint Venture
NEW YORK-Iconix Brand Group reported a 24 percent jump in net income in its fourth quarter, to $30.2 million, and has created a joint venture with Reliance Brands to expand its portfolio of fashion and home brands into India.
Net sales for the quarter, which ended on Dec. 31, rose 8.6 percent to $95.5 million. Selling, general and administrative expenses fell 8.8 percent in dollars and 874 basis points as a percentage of sales to 45.6 percent. For the fiscal year, Iconix posted net income of 141.2 million, up 28 percent from the prior year. Sales increased 11.2 percent to $369.8 million.
Neil Cole, Iconix's chairman and CEO, said 2011 proved to be another record year for the company. Apropos of the Reliance joint venture, Cole added that international markets will prove to be "the next big phase of growth" for Iconix, and cited the company's already-existing partnerships in China, Latin America and Europe.
Based in Mumbai, the new venture will own Iconix's brands--including home labels such as Cannon, Royal Velvet, Fieldcrest, Charisma and Waverly--for the Indian market. It will follow Iconix's business model in North America, which centers on growing royalty revenue through licensing agreements with both manufacturers and retailers while providing marketing and brand-management services.