“Results for the second quarter of 2019 were as expected, as we continue to stabilize the business and our operational cost structure. Our focus on the business and costs helped to improve our EBITDA margin to 59% from 49% in the prior year quarter.  We also continue to build the pipeline of our future business, as we have signed 111 deals year to date for aggregate guaranteed minimum royalties of approximately 79 million US dollars”, commented Bob Galvin, CEO.

For the second quarter of 2019, total revenue was 34.4 million US dollars, a 31% decline, compared to 50.2 million US dollars in the second quarter of 2018. Such decline was expected, principally as a result of the transition of Danskin and Mossimo direct to retail licenses. Revenue for the second quarter of 2019 was also impacted by the effect of the Sears bankruptcy on Joe Boxer and Bongo brands in Women’s and the Cannon brand in Home. While Iconix recently signed new agreements with the new Sears and Kmart for the Cannon and Joe Boxer brands, the overall revenue for the Cannon and Joe Boxer brands was down year over year.

For the six months ended on the 30th of June 2019, total revenue reached 70.3 million US dollars, a 29% decline, compared to the 98.8 million US dollars in the six months ended on the 30th of June in 2018.

The women's business line registered a declining revenue by 52% in que quarter (-51% in the first half of the year).

The men’s segment revenue decreased by 37% in the second quarter of 2019, compared to the prior year quarter primarily from the Buffalo brand. In the first six months of the year, the decline in this line of business was minor, only -14%.

The international segment declined by 3% in the second quarter of 2019 primarily as a result of performance in China. The decline in the first 6 months of the year already reached 9%.

About Iconix

Iconix Brand Group is an American brand management company that licenses brands to retailers and manufacturers primarily in the apparel, footwear and apparel accessories industries. Their brands are available at stores such as Kohl's, Kmart, Sears, Macy's, Target and JC Penney.