Iconix Brand expects sales decline in Q3
US clothing marketer Iconix Brand Group said that it expects licensing revenue to fall some 12 percent in the third quarter of 2017, as it reported preliminary third quarter results on Wednesday.
The company expects licensing revenue to be approximately $53.2 million, compared to $60.5 million in the prior year quarter, due to the sale of the Sharper Image brand which was sold in the fourth quarter of 2016 and revenue loss from its Southeast Asia joint venture which was deconsolidated in the second quarter of 2017.
Excluding Sharper Image and Southeast Asia, revenue declined approximately 7% in the third quarter of 2017.
The company also expects SG&A expenses to be approximately $21.5 million in the third quarter ended September 30, 2017, a 28 percent decrease.
The brand management company sold its entertainment segment to DHX Media for $345 million in cash earlier this year.
The sale has reduced the company’s debt, but will lead to a loss in sales. Still, Iconix said in May that the loss of sales will be offset by savings on interest payments on Iconix’s existing debt.
The company still expects full year 2017 results to be within previously issued guidance, which includes full year revenue in a range of approximately $350 million to $365 million.
Iconix Brand Group Inc. is a brand management company and owner of a diversified portfolio of 35 global consumer brands across women’s, men’s, and home segments.
The company manages brands such as Joe Boxer, London Fog, Marc Ecko and more.
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