Sequential Brands Group is seeking to expand its e-commerce and international businesses amid sluggish sales through brick and mortar stores, company executives told analysts.

While sales through e-commerce – through retailer sites and other online channels – account for just 8% of the company’s annual revenue, it’s increasing at a quicker pace than brick and mortar. For example, e-commerce sales increasing 13% overall in Q4 ended Dec. 31, including a 60% bump at Amazon, said CEO Yehuda Shmidman.

Sequential slightly revised downward its 2017 revenue forecast for 2017. The company forecast revenue year of $170-$175 million, down from an earlier projection for $175-$180 million, but up from $155.3 million last year.

Sequential’s lower revenue projection reflects “disappointing results” from U.S. retailers and the “current outlook for traditional brick and mortar retailers in general,” Shmidman said. But the company has “the ability to drive positive growth by adding licensees for our brand and by driving sales with high-growth retailers and ecommerce partners.”

Meanwhile, Sequential renewed its DTR agreement with Macy’s for Martha Stewart home goods and is extending its deal with Home Depot to include bath vanities. The new multi-year pact with Macy’s provides a “strong base” for the Martha Stewart home business with “sizeable” guarantee, Shmidman said.

Sequential also landed a new Martha Stewart deal with Michaels for a crafts collection that will launch late this year. Separately, Marta Stewart watercolor craft and home décor paint, via licensee Plaid Enterprises, will launch exclusively at Michaels in June.

Sequential’s net loss for Q4 ended Dec. 31 narrowed to $1 million from $5.7 million a year earlier as revenue jumped 30% to $45.4 million. Strong sales of Martha Stewart, And1, Avia and Heelys brands were partly offset by “weak” revenue from the Ellen Tracy (dresses) and Revo (performance eyewear) brands, company officials said.

Contact

Sequential Brands Group, Yehuda Shmidman, CEO, 646-564-2577