The latest major entrant into the licensing business, Sequential Brands Group, reported a jump of 117 percent in its revenues to $13.6 million for the first quarter. Adjusted operating results vaulted to $8.0 million from $3.1 million, and net earnings grew by 95 percent on a GAAP basis to $1,444,000.
The Avia and And1 brands performed well in the U.S. at Walmart, which is now taking these brands international in its stores abroad. Another brand owned by Sequential, Heelys, is beginning to get traction as a lifestyle brand for children with backpacks, apparel and possibly toys or games in the future.
Revo, another brand recently bought by Sequential, is also expanding internationally through its licensee, B. Robinson. It has signed an exclusive distribution agreement for Eastern Europe with Optika Tommas, a former distributor of Luxottica (more in Eyewear Intelligence).
Sequential says it is ahead of schedule in its plan to take total retail sales up to $3.5 billion for its brands, with $100 million in annual royalty fees and adjusted Ebitda of $70 million. It has $250 million in contractually guaranteed minimum royalty payments in its portfolio, of which $62 million are due for payment this year.