Iconix Brand Group's licensing revenues of $95.4 million in the first quarter were down by 15 percent from the same period a year ago, but they were flat on a comparable basis. International revenues were up by a mid-single-digit rate, with the company-owned Umbro brand up by 20 percent.
The company acquired control of its joint venture in Latin America last year and did the same with its joint venture in China during the first quarter. The acquisition resulted in a pre-tax gain of $47.4 million, higher than a gain of $37.9 million in the year-ago period. Nevertheless, Iconix reported an increase of only 5 percent in net income to $62.8 million.
The management sees revenue growth accelerating in the second half of the year, driven by 10 percent higher revenues outside the U.S., including its joint ventures in Japan and South Africa. It is bullish about China.
Iconix' chief financial officer, Jeff Lupinacci, and its chief operating officer, Seth Horowitz, have both resigned in the past few weeks, sending down the company's share price. They were both appointed about a year ago, and they both apparently left for their own reasons. The company will not name a new COO but the search for a CFO is underway.