Iconix Brand Group's three athletic brands exclusive to Walmart Starter, Ocean Pacific and Danskin Now recorded “substantial growth” in the second quarter. OP in particular saw its largest quarter to date. On a conference call with analysts, company COO Yehuda Shmidman said OP benefited by being featured in Walmart's “hot spots” for the second straight year, as well as by the introduction of pool toys and other related outdoor gear.
Danskin Now and Starter both continued to gain shelf space with the continued expansion of a large basic business, including underwear, socks, and athletic footwear. Starter particularly benefited from a new underwear package while Danskin Now toning shoes have been performing well.
“I think if you go into a store, you will see we pretty much are the whole athletic portion between Danskin Now and Starter,” said Neil Cole, ICON's chairman and CEO. “We are the key brand, and anchor, for both of those businesses, and OP has had a wonderful year. So we're hopeful in talking to the new team that they're pretty energized by what we do. “
Other direct-to-retail brands performing strongly in the quarter included Candie's and Mudd (both exclusive to Kohl's) and Charisma (exclusive to Costco). Among wholesale brands, Rocawear's growth is being driven by its kid's business. Ecco's sales are on plan with several new licenses expected to jumpstart growth later this year.
Overall, Iconix Q2 revenue grew 35% to $76.0 million. Earnings advanced 25% to $26.7 million, or 36 cents a share.
