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New York—Iconix Brand Group Inc, the licensing giant behind Candies, Danskin, Ed Hardy and Material Girl among others, lowered its full year forecast today after reporting its first quarter sales and profit fell.
For the quarter ended March 31, Iconix posted a 12% decline in its net income to $30.9 million, or 37 cents per share, compared with $35.1 million, or 42 cents per share, a year ago. Excluding items, the company earned 43 cents per share.
Total revenue fell 4% to $88.5 million.
The results were below what analysts’ average estimate expected: a profit of 46 cents a share on revenue of $95 million.
Iconix revised downward its previous 2012 guidance. The company now expects earnings of $1.65 to $1.74, down from its previous estimate of $1.77 to $1.84. Expected full year sales were revised to $340 million to $350 million, from $370 million to $385 million.
As part of its strategy to increase international sales, especially in Asia and Latin America, Iconix had announced a joint venture in February with Reliance Brands to sell many of its brands in India. That joint venture, which would have could have added $6 million to Iconix’ sales, is awaiting government approval, probably by close of second quarter.
“Although we see some challenges in the short term, we remain positive on the long-term as we continue to execute an exciting and extremely profitable business model with a diversified portfolio and strong foundation,” said Neil Cole, chaiman/ceo.
