ICONIX BRAND GROUP SEES ANOTHER SALES DECLINE
Iconix Brand Group, Inc., which licenses, markets, and/or owns such brands as Joe Boxer, Marc Ecko, Ed Hardy, and Nick Graham, has reported its financial results for the fourth quarter and full year ended December 31, 2016.
For the fourth quarter of 2016, licensing revenue was approximately $87.1 million, an 8% decline as compared to $94.7 million in the prior year quarter. Revenue in the prior year’s fourth quarter included approximately $1.3 million of licensing revenue from the Badgley Mischka brand, for which there was no comparable revenue in the fourth quarter of 2016, due to its sale in the first quarter of 2016. In the fourth quarter of 2016 there was a slight positive impact from foreign currency exchange rates primarily related to the Yen. Excluding Badgley Mischka and the currency impact, revenue was down approximately 7% for the quarter.
For the full year 2016, licensing revenue was approximately $368.5 million, a 3% decline as compared to $379.2 million in 2015. Revenue in 2015 included approximately $5.0 million from the Badgley Mischka brand for which there was no comparable revenue in 2016. In 2016, the Company benefitted from a $3 million favorable impact from foreign currency exchange rates primarily related to the Yen. Excluding Badgley Mischka and the currency impact, revenue was down approximately 2% for the year.
John Haugh, CEO of Iconix said, “2016 was a year of transition for Iconix. Our operating performance was in-line with our guidance. I believe the changes we have made over the past year provide a strong foundation to drive long term growth and shareholder value. With this work we are on a path to organic growth, improved earnings, an improved balance sheet and continued market leadership.”
