Iconix Brand Group cuts its full-year guidance due to weakness in its men's division, particularly Rocawear, Ecko and Ed Hardy, and other delays in international plans. It now expects adjusted net income in 2012 will be $1.65 to $1.74, down from prior guidance of $1.77 to $1.84 per share. Revenues are now expected to range between $340 million and $350 million in 2012, down from prior guidance of $370 million to $385 million.

Iconix updated its guidance while reporting that first-quarter profits slid 12.1 percent to $27.6 million, or 37 cents a share. Excluding a one-time charge related to interest expenses, income was 43 cents a share, shy of analyst expectations of 45 cents per share. Revenues dropped 4.2 percent to $88.5 million.

On a conference call with analysts, Yehuda Shmidman, COO and EVP, noted that the significant drivers of the sales decline versus last year was a transition of Royal Velvet to a new direct to retail license with JC Penney, and weaker than expected sales from its men's brands, specifically Rocawear and Ecko. In addition, Iconix is still waiting on government approval for a joint venture in India. If it had closed as expected in the quarter, it would have contributed approximately $5 million to $6 million in revenue or 4 to 5 cents in diluted EPS.

To turn around Rocawear, Michael Prendergast, the former president of Chaps, was hired as the brand's CEO and free-standing stores are being planned. The brand's co-founder and rapper Jay-Z also appeared for the first time in a TV commercial supporting the brand during the quarter. Ecko was particularly hurt by a large decline in the footwear business licensed by Skechers, previously a top revenue producing category for the brand.  Ed Hardy is in the process of transitioning the core apparel business to a new licensee.  

Regarding its sports-oriented brands, OP (Ocean Pacific), an exclusive at Wal-Mart, is being planned down slightly for the full year due to the loss of a couple key categories last year, including intimate apparel. But Shmidman said the business has “stabilized” with a recent pickup in swim and may wind up even this year. Starter and Danskin Now, also exclusive brands at Wal-Mart, are “doing very well” as core parts of the chain's basics strategy. Added Shmidman, “Both Starter and Danskin pretty much own the basic businesses on the athletic side of the business. We have a huge sock business and I think we did a majority of the basic socks and t-shirts, and so we have seen a nice pick up.” Among other brands, Mudd, Bongo  and Material Girl all saw double-digit retail sales growth while Mossimo and Joe Boxer also grew.