NEW YORK-A drop in revenues and a 41 percent increase in interest expense pushed Iconix Brand Group’s first-quarter net income by 12 percent, to $27.6 million.
Licensing and other revenue for the brand holding company fell 4.2 percent to $88.5 million in the quarter, which ended on March 31. Selling, general and administrative expenses were slimmed by 3.5 percent, but increased 28 basis points as a percentage of sales to 34.9 percent.
Iconix said it has revised its revenue projections for the full 2012 fiscal year to from $340-350 million, down from a previous call for between $370-385 million.
While foreseeing “challenges” for Iconix in the short term, Neil Cole, chairman and CEO, said the long-term outlook continues to be positive. Cole said Iconix will “remain focused on acquisitions to deliver additional value to our shareholders.”