AND1, Avia, Heelys and Gaiam all saw progress in the first quarter for Sequential Brands Group.
“In the active division, AND1 and Avia continue to perform well as a result of our strong partnership with Walmart,” said its new CEO, Karen Murray, on a conference call with analysts.
Heelys continues to show “consistent growth,” although it’s being driven by international expansion. The skate-shoe brand is in 185 countries.
Murray said the company also continues to execute on its growth initiatives for the Gaiam brand.
“Just this past month we partnered with Lord & Taylor to host the two-day experiential health, wellness and shopping event at its flagship store in New York City,” Murray said.
Gaiam had its own 1,000-square-foot pop-up store on the activewear floor offering free massages and juices. Shoppers also had the opportunity to attend wellness and yoga classes led by Gaiam experts.
“The event was a huge success, driving significant sales on the active wear floor and millions of social media impressions,” said Murray. “This event is meaningful for several reasons, but mainly because it’s the perfect example of how we work hard to provide solutions to our retail partners. Understanding the challenging retail landscape and the need to provide in-store experiences to customers, we came to the table with Lord & Taylor to create a truly unique experience around health and wellness. It was a win-win for Sequential and our partner, and will provide a blueprint to implement a retail concept for Gaiam as we move forward.”
Companywide, Sequential Brands reported total revenue for the first quarter ended March 31, 2017 increased 16 percent to $39.4 million. On a GAAP basis, the net loss for the first quarter 2017 was $1.2 million, or 2 cents a share, compared to a net loss for the first quarter 2016 of $1.1 million, or 2 cents.
Excluding non-recurring items including severance payments for the last CEO, non-GAAP income for the first quarter 2017 was $5.9 million, or 9 cents per share, compared to $2.5 million, or 4 cents, in the prior-year period. Adjusted EBITDA was $23 million, compared to $16.7 million in the prior-year quarter.
For the year ending December 31, 2017, the company reiterated guidance of $170 million to $175 million in revenue and $98 million to $102 million of adjusted EBITDA. The company’s GAAP net income is now expected to be $15.5 million to $18.1 million due to costs associated with the CEO departure.
The company’s brands also include Jessica Simpson, William Rast, Joe’s Jeans, Martha Stewart, Chef Emeril, Revo, DVS and Ellen Tracy.
Photo courtesy Gaiam
