Home business an outlier for Iconix Brand Group

• April 05, 2021

New York – Home was the only Iconix segment to elude the drag of the global pandemic during the fourth quarter.

Sales in the Home segment shot up 62% to $5.8 million. An increase in licensing revenue from the Charisma and Cannon brands was partially offset by a decrease in the Fieldcrest brand. Fieldcrest revenues, however, appear poised to rise. In early March, JCPenney launched the brand across soft home as an exclusive.

Total fourth quarter revenue at Iconix Brand Group tumbled 22% to $33.9 million. The company saw revenues fall 21% in Women’s, 35% in Men’s and 30% internationally.

The company ascribed the results on the impacts to its global business from COVID-19.

“While we are hopeful that the pandemic will subside in 2021, we will continue to address the many pandemic-related challenges we face between now and then, and, at the same time, continue to focus on realizing the opportunity that exists for our brands through focusing on building our pipeline of future business,” said CEO Bob Galvin.

He noted that Iconix signed 190 deals during 2020 for aggregate guaranteed minimum royalties of approximately $134 million, approximately the same amount that the company signed in 2019.

Galvin continued, “We have also made great strides to de-lever our balance sheet. From December 31, 2019 to today, through proceeds from assets sales and cash flow, we have reduced our term loan balance by over 52%, or approximately $92 million.”

Net loss for the quarter ended Dec. 31, 2020, narrowed to $14.1 million, or $1.06 per diluted share, from $93.0 million, or $7.94 per diluted share.

Home was also the only segment to post a revenue gain for the fiscal year, with sales up 9.5% to $16.2 million. Total company sales for the fiscal year fell 27% to $149.0 million.

Net loss for the year shrank considerably, coming in at just under $3 million or $0.60 per diluted share, compared to a net loss in 2019 of $109.5 million, or $10.37 per diluted share.