Strong sales by Heelys outside the U.S., along with recent acquisitions and the sales of other brands in its portfolio of licenses, such as Jessica Simpsons and William Rast, helped Sequential Brands Group to book an 83 percent increase in revenues to $42.0 million in the third quarter ended Sept. 30. The American licensing company's adjusted Ebitda jumped to $24.9 million from $15.7 million in the year-ago period, although net earnings fell by 52 percent to $1.3 million.
The management recently indicated that it wants to build up on its international momentum and expand e-commerce in order to help reach adjusted Ebitda of $175 million in 2018 on retail sales of $6 billion at retail level by 2018. This would compare with adjust Ebitda of $53 million and retail sales of $2 billion in 2015.
International and digital sales currently represent about 10 percent each of retail sales for Sequential's licensees around the world. The group wants to push their share to 15 percent for both international and digital sales. One of its sports brands, And1, has strong growth potential in China through its new licensee in the country, GRN, which has thousands of stores in the country. It plans to develop and distribute men's and boys' basketball apparel, footwear and accessories under the And1 label for distribution in the country.
Like And1, another Sequential brand, Avia, has been growing through category extensions. And1 has expanded into team uniforms and hosiery, and it is now adding basketballs. New Avia product lines include backpacks, bags and children's apparel, hosiery and accessories.