On its fourth-quarter conference call, Iconix Brand Group indicated its marking a quick transition period for Umbro, the soccer brand acquired from Nike Inc. in December.
Partnerships have already been reached with distributors in four international territories that Nike served directly, and Iconix is in the process of signing a European license. Iconixs management also sees big opportunities in markets such as Brazil and China while its working on a strategy to build out the brand in the U.S.
Umbro is this incredible lifestyle brand, based with a very strong British heritage, almost 90 years old, said Neil Cole, Iconixs CEO.
In the U.S., Dick’s SG is a core licensee, but weve also signed a few other licensees to supplement the market, said Cole. This year, Iconix plans on launching a new marketing campaign leading up to the World Cup in Brazil in 2014, with a campaign around the Olympics following afterwards.
Among its other sports-related brands, the mens business has been pretty challenging and we budgeted them pretty conservatively in 13.
Cole believes Rocawear has stabilized, with the men’s core business performing okay, and renewals found in kids and other categories. As such, Rocawear is being planned flat for the year. Marc Ecko is starting to grow its tailored business while Ed Hardy is particularly finding success internationally in India, Europe and China.
The stars in the men’s portfolio have been Zoo York, said Cole, as well as Starter, which Iconix is taking into better stores with the relaunch of NFL and NBA Starter jackets.
Overall, Iconixs revenues were down 10.1 percent to $85.1 million in the quarter, with the decline due to the transition of the Royal Velvet license and year-over-year declines in men’s. Net income declined 4.0 percent to $26.1 million, or 37 cents a share.
