Sequential Brands Swings into Q1 Profit, Sales Rise

ellen tracyNew York—Sequential Brands reported Thursday that it swung into a first quarter profit since converting to a licensing and brand management business model.

For the quarter ended March 31, the owner and marketer of Ellen Tracy, William Rast, Revo, Caribbean Joe, Heelys, DVS, The Franklin Mint and People’s Liberation posted net income of $700,000, or 3 cents a share, compared with a net loss of $21.5 million, or $2.96 a year, in the year-ago quarter.

Total revenue was $6.3 million compared with $1.6 million in first quarter last year.

‘An Exciting Time’

“This is an exciting time for Sequential Brands Group,” said CEO Yehuda Shmidman. “We achieved record first quarter results since converting to a licensing and brand management business model, and we continue to be optimistic about our future ability to grow our portfolio both organically and through new brand acquisitions. As we continue to execute on our playbook, we believe our portfolio can achieve upwards of $100 million in annual royalty revenue in the next three years.”

For 2014, Sequential forecast sales between $28 million to $30 million from its existing portfolio of brands. The company expects “margin expansion to continue as the company acquires additional brands.”

 

 

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Jeff Prine, Editor at Large, Accessories Magazine
Jeff returns as a regular contributor to Accessories magazine. Initially Jeff worked as senior editor at Accessories more than 20 years ago and his love of the industry has followed him until present. Since his tenure here, Jeff has continued to report jewelry, watch and other luxury goods trends as executive editor at Modern Jeweler magazine, fashion director at Lustre, and as contributor on products and trends for consumer and trade publications and websites. In addition to his editorial experience, Jeff also served as an adjunct instructor for accessories merchandising at Fashion Institute of Technology. jeffp@busjour.com