Iconix Q2 Net Drops 8.8 Percent
Posted on July 29, 2014 by
NEW YORK-A sharp rise in interest expense and an increased provision for income taxes reduced Iconix Brand Group's second-quarter net income by 8.8 percent, to $35.3 million.
Interest and other expenses rose 58.5 percent in the quarter, which ended on June 30. Iconix also raised its provision for income taxes by 11.3 percent.
Both of these items offset a 3.3 percent gain in licensing revenue, which totaled a record $118.9 million. Selling, general and administrative expenses increased 1.6 percent in dollars but were down 64 basis points as a percentage of sales, to 37.2 percent.
Neil Cole, Iconix's chairman and CEO, said the record revenue indicates "the power of our business model with our diversified revenue stream and strong free cash flow. As we look to the future, we believe we can continue to deliver significant growth and increased value for our company and shareholders through our global expansion plans, worldwide Peanuts business (Iconix has owned the Peanuts brand since 2010) and additional acquisitions of global iconic brands."
Based on the second quarter, Iconix said it believes its annual revenue for this year will total between $455 million and $465 million.