NexCen Brands, the parent of The Athlete's Foot, expects to report revenues from continuing operations of its franchise business of approximately $12 million in the third quarter of 2008 compared with $6.5 million in the third quarter of 2007, an increase of approximately 85%. Third quarter 2008 results fully reflect the acquisitions completed in 2007 and the acquisitions of Shoebox New York and Great American Cookies completed in January 2008.
The company expects royalty and other revenue of approximately $7.1 million for the third quarter, a 42% increase from $5.0 million in the year ago period.
Revenues relating to NexCens consumer branded licensing business, which consists of Bill Blass and Waverly, will be reported as discontinued operations due to the expected sales of those businesses. Licensing revenues from the Bill Blass and Waverly businesses are expected to be approximately $2.2 million in the third quarter, down 54% from $4.8 million in the year ago period.
On Sept. 29, 2008, the company executed a definitive agreement with Iconix Brand Group, Inc. for the sale of its Waverly Business. The transaction closed on Oct. 3.