Iconix Net Leaps 66 Percent in Second Quarter
NEW YORK-In what Neil Cole, chairman and CEO, said were record results for both the top and bottom lines, Iconix rang in with net income of $44.8 million in its fiscal second quarter, 66 percent ahead of last year's second-quarter result.
The company benefited from a 17.5 percent increase in licensing revenue, to $89.3 million, for the quarter, which ended on June 30. In addition, the bottom line grew thanks to a non-recurring non-cash gain of about $21.5 million from its acquisition of the Ed Hardy apparel brand, in which it transitioned from a non-controlling interest to a controlling interest. Selling, general and administrative expenses rose 20 percent on a dollar basis and 77 basis points as a percentage of sales, to 35.5 percent.
Cole said Iconix's brands continue to "gain momentum" both in the United States and abroad. The company now expects 2011 licensing revenue to total between $355 million and $365 million, which would represent increases of from 6.7 percent to 9.7 percent over fiscal 2010.