Iconix Taking $500-$750 Million Charge Against Q3 Earnings
Iconix Brand Group is taking a $500-$750 million charge in Q3 ended Sept. 30, largely tied to it womenswear business, which took a hit when Walmart ended a 10-year pact for the Danskin and Danskin Now brands (Inside Licensing Oct. 31).
The Danskin agreement with Walmart generated about $15.5 million in annual revenue for Iconix. The company also is faced with Target ending a deal for the Mossimo brand (effective in January 2018) and Walmart dropping a program for OP/Ocean Pacific in 2019. Walmart also earlier ended a DTR program for the Starter brand (Inside Licensing Aug 10), which is now being sold exclusively on Amazon.
According to a preliminary report, Iconix’s Q3 revenue declined 12% to $53.2 million, due partly to the loss of $2.3 million in revenue from the Sharper Image brand, which was sold to the ThreeSixty Group in late 2016.
Contact:
Iconix Brand Group, David Jones, Chief Financial Officer. 212-730-0030, djones@iconixbrand.com
