Rising Expenses Slash Iconix's Bottom Line in Second Quarter
NEW YORK-Second-quarter net income for Iconix Brand Group fell 31.2 percent to 28.6 million, the result of increases in operating and interest expenses.
Selling, general and administrative expenses rose 9.4 percent on a dollar basis and 153 basis points as a percentage of sales, to 37 percent. The brand-management company also recorded interest expense of $12.3 million in the quarter, which ended on June 30, compared to interest income of $8.4 million in the second quarter of last year. Both items helped offset a 4.9 percent gain in revenue, which finished the quarter at $93.6 million.
Despite the fall in the bottom line, Neil Cole, Iconix's chairman and CEO, professed himself "pleased" with the company's overall performance. "Our strategy of building our brands globally is gaining momentum with the launch of our India joint venture with Reliance (which closed during the second quarter) and our first two direct-to-retail licenses in Europe," Cole said. "Looking ahead, we see continued opportunities to grow the portfolio in both the U.S. and around the world."