The Iconix Brands Group, which owns a host of brands including Umbro, booked an impairment charge of $13.7 million for the first quarter, attributing it to the recent and future effects of the coronavirus pandemic on Umbro and four other brands in its portfolio. The charge inflated the company’s net loss for the period to $21.5 million. In the same quarter a year earlier, an extraordinary gain of $19.9 million had led to a net profit of $17.9 million. The group’s revenues declined by 22 percent to $27.9 million. The men’s segment fell by 38 percent to $6.7 million, with lower revenues from the Buffalo and Umbro brands. International revenues decreased by 12 percent to $11.5 million, due in part to weakness in Europe and Latin America. The management says it has cut costs by more than $10 million on an annualized basis since the start of the Covid-19 pandemic. It has also signed 41 new license deals since the start of 2020, which are set to generate additional annual revenues of around $24 million.

Topics