New Iconix CEO Seeking ‘Global Voice’ for Brands
Iconix Brand Group is revamping its brand strategy with plans to develop a “global voice” for them that stretches across markets and regions, CEO Robert Galvin said as the company released Q3 earnings.
Galvin, speaking to analysts and investors for the first time since being hired as CEO this fall, stressed the need for “global collaboration” in developing brands that “take advantage of the global supply chain.” Iconix owns 29 brands.
“Our best product offerings should not be limited to one market or territory, but should be available to each market to reduce cost for everyone and improve sales for the brands,” Galvin said. “The brands have tremendous consumer awareness and followers and they now need to be more accessible to those customers. They currently have more mindshare than closet-share.”
Net loss narrowed to $20.2 million from $550 million a year earlier, which included a $521 million charge linked to decline in value of several of its brands. Total sales declined 13% to $46.2 million. Earnings included an $8.2 million bad debt expense tied to Sears’ bankruptcy. Iconix has DTRs with Sears for the Bongo, Joe Boxer and Cannon brands. It took a $4.4 million asset impairment charge against Q3 earnings for Joe Boxer.
The men’s business dropped 36% to $7.2 million; declines in the Starter and Buffalo brands offset gains in Lee Cooper and Umbro, the latter benefitting from a launch at Target in February. Operating income for the men’s business plunged 79% to $1.8 million.
Revenue from the women’s business decreased 28% to $18.2 million due largely to the loss of DTRs for Danskin, Mossimo and Ocean Pacific (OP). The segment’s operating income fell 60% to $7.6 million.
In home, operating income decreased 47% to $3.5 million as revenue slipped 6% to $7 million, owing to new terms included in a license renewal for the Waverly Inspirations brand at Walmart. Iconix is extending the Waverly Inspirations brand for bedding to Christmas Tree Shops in 2019.
Contact:
Iconix Brand Group, Jeff Wood, Interim CFO, 212-730-0030, jwood@iconixbrand.com
