Jul 29, 2010
Iconix’s revenue up 35% thanks to brand expansion plans
Jul 29, 2010
Organic growth strategies, particularly internationally have gained significant success in the last year. Iconix’s CEO analyses recent results and reveals future plans for its brands, Bongo, Candie’s and Madonna’s Material Girl.
2010 record results
• Total revenue for the second quarter of 2010 up 35% compared to 2009. Now Iconix record 12 billion dollars in retail sales on a pro-forma annual basis.
• The six months ended June 30, 2010 saw top and bottom line growth: total revenue increased 38%.
• Iconix earns 75 million dollars in royalty revenue from its 1200 licenses worldwide with partnerships such as Benetton, H&M, Mango and M&S.
• Free cash flow increased 26% increase as compared to the prior year quarter. A result lower than the company was tracking due to deal costs and additional payments associated with the Peanuts deal (a lower margin than its fashion and homewear brands is expected here);
Neil Cole, Chairman and CEO of Iconix Brand Group, Inc. thinks the group will continue to gain market share as its brands penetrate its departments stores like Walmart, Kohl and Cosco further.
With Gossip Girl’s Taylor Momsen as the face of Madonna and daughter, Lourdes’ Material Girl collection, consumers are eager for its launch in Macy's on August 3rd. Strong success is predicted based on Lourdes’ weekly fashion blogs which recorded 1 million hits in its first 3 weeks.
All Walmart brands grew with OP recording its largest quarter to date and its highest sales week ever. Kohl’s added new key items and fashion basics with a new product lines to come.
International business covers 18% of Iconix’ total revenue, compared to 6% in 2009. Charlie Brown’s “Peanuts” is the latest international platform present in over 40 countries.
China, Europe and Latin America are integral in their joint ventures. Particularly in Greater China where the company now counts five brands, including recent acquisition of Candie’s, which confirm aims to open 1000 stores within the next 3 years.
By Rosie Hart
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