Iconix Sees Huge Growth for OP, Danskin Now, and Starter…
Neil Cole, CEO of Iconix Brand Group, Inc., believes OP, Danskin Now and Starter could generate between $3 billion to $5 billion in annual retail sales “within a few years' time.”
OP was just launched at Wal-Mart and “the early results are very exciting,” David Conn, EVP at Iconix Brand Group, said on a call with analysts. The product is currently in over 1,000 Wal-Mart stores. The line is being supported by an advertising campaign including Corbin Bleu, Kristin Cavallari, and Rumer Willis.
Sales of Starter were up in the quarter, driven by the core men's active wear business. Starter, acquired last year, is currently sold primarily to Wal-Mart through license agreements with a number of different wholesalers. The company is working to convert this to a direct-to-retail license with Wal-Mart.
Cole said Starter, currently a $400 million business with Wal-Mart, has the potential to reach over $1 billion.
Overall, Iconix Brand Group reported first quarter revenues surged 81% to $65.7 million from $30.8 million a year ago. EBITDA increased 66% to $38.8 million. Net income increased 43% to $18.2 million, or 30 cents a share, from $12.7 million, or 21 cents, a year ago.
