New York—Sequential Brands Group, Inc. reported Monday record sales in its third quarter but its net loss widened, too. The company also added to its growing roster of brands by purchasing The Franklin Mint.
For the quarter ended Sept. 30, the owner of brands such as William Rast, Ellen Tracy, Heelys, Revo, etc., posted a net loss of $1.2 million, or 5 cents a share, compared with a net loss of about $500,000, or 20 cents a share, in the year-ago quarter.
Total net revenue climbed 250% to $6.1 million compared with about $1.3 million in the same quarter last year.
“It was a busy quarter for Sequential. We raised over $44 million in capital through a private placement, completed the acquisition of the REVO brand and up-listed to NASDAQ,” said Yehuda Shmidman, Sequential ceo, “The revenue generated this past quarter from our portfolio of brands represents record levels for us as a pure-play brand management company, demonstrating the type of growth trajectory we set out to achieve when we began to transform our business model last year.”
Acquires Franklin Mint
Looking ahead, Shmidman said the company is well positioned to grow organically as well as continue to expand its portfolio of brands. “We aim to be a leading global brand management firm.”
Speaking of acquiring new brands, Sequential also announced it has purchased all related intellectual property and certain other assets of the Franklin Mint for an undisclosed amount.
“The Franklin Mint is a dream opportunity for Sequential,” said Shmidman. Our three-pronged growth strategy of increasing distribution channels for existing product categories, expansion into new product categories and international growth fits perfectly with how we believe The Franklin Mint can best grow. We expect to announce several new initiatives for the brand over the coming months as we look to execute on our growth strategy.”
Future plans for the brand include a continuation of the brand’s heritage to commemorate the events and milestones of life with keepsake items, and the introduction of additional offerings through new expanded channels of distribution.