Iconix Brand Group’s earnings jumped 69.4 percent in its second quarter, to $41.5 million, or 55 cents per share. Revenues rose 17.5 percent to $89.3 million.
According to statements by Yehuda Shmidman, Iconix’s EVP of operations, on a conference call with analysts, top performers in the quarter were two newer direct-to-retail (DTR) juniors brands: Mudd at Kohl’s and Bongo at Kmart and Sears, Some more established DTR brands – Joe Boxer, Mossimo, and Fieldcrest-all posted positive gains. Its three sports brands at Wal-Mart-Starter, Danskin Now and OP-“have developed into sizable businesses and similar to our Mossimo brand at Target, they have begun to deliver consistent results,” said Shmidman.
A standout was Danskin Now, which Shmidman said has become one of the top-selling women’s brand in Wal-Mart’s apparel business. Its OP license with Wal-Mart was recently renewed.
Material Girl also delivered “a strong quarter” at Macy’s while Badgley Mischka and London Fog also performed well. On the downside, the companys urban brands, including Rocawear and Ecko, “remain challenged.” A Rocawear athletic line is expected to launch in the first half of 2012.
The company raised its guidance for the full year by 11 cents to a range of $1.61 to $1.66 per share.
The company also said it reached an agreement to pay $18 million to increase its ownership interest in the Zoo York brand to 100 percent. It currently owns 51 percent. Since taking control of the brand in late 2009, the company partnered with Li & Fung and substantially expanded Zoo York’s distribution into department stores including JC Penney and Kohl’s.
