Iconix posts $69 Million Q4 Loss
Iconix Brand Group will continue to focus more on standard third-party licensing agreements and less on its previously emphasized DTRs as it seeks to widen retail distribution for its brands, CEO Robert Galvin said in releasing Q4 earnings.
The company has signed 83 deals since October carrying an aggregate $45 million in minimum guarantees on contracts ranging from one to five years in length, executives said.
“I won’t eliminate DTRs, but I can’t say that will be the norm going forward,” Galvin said.
At the same time, it’s concentrating on expanding those in its existing portfolio, Galvin.
Iconix has hired six agents “on a pay- for-performance basis” who work with internal staff for licensing across “specific brands, channels and categories,” Galvin said.
Among new deals Iconix has reached in recent months are those with Himatsingka for Royal Velvet (bedding, sheets, towels); One Step Up (Pony men’s and women’s footwear) and G-III Apparel (Starter footwear). One Step Up has shipped footwear to Champs and Footlocker and will launch a Pony ecommerce web site in April. It will deliver Pony apparel by fall.
Iconix has cut the number of VPs to 18 from 24 and slashed global staff to 122 from 156, including dropping to 53 in the U.S. from 81, Galvin said. Galvin also has increased the number of executives reporting directly to him.
“The result has been an increase in global collaboration between brand managers in all segments and territories as they are now interacting with their peers in other parts of the world,” Galvin
Iconix had a $69 million net loss in Q4 ended Dec. 31, compared to a $24.7 profit a year earlier as it took a $59 million trademark impairment charge tied to Mossimo, Joe Boxer and Mudd, the latter a DTR at Kohl’s.
Revenue fell 18% to $42.7 million, due largely to a 56% decline in the women’s business to $8.7 million due partly to ending last fall of an 18-year DTR for the Mossimo brand at Target.
Home revenue decreased 34% to $4 million, while the international business rose 4% to $18.6 million.
Contact:
Iconix Brand Group, John McClain, CFO, 212-730-0030, jmcclain@jmcclain@iconixbrand.com
