This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below.
|Zacks Rank||Definition||Annualized Return|
Zacks Rank Education - Learn more about the Zacks Rank
Zacks Rank Home - All Zacks Rank resources in one place
Zacks Premium - The only way to get access to the Zacks Rank
This page is temporarily not available. Please check later as it should be available shortly. If you have any questions, please email customer support at email@example.com or call 800-767-3771 ext. 9339.
Iconix reported third quarter earnings of 41 cents, ahead of the prior-year earnings and the Zacks Consensus Estimate by a penny. Total revenue, however, declined 6.6% to $86.6 million due to decline in Men’s businesses and transition of Royal Velvet brand’s license. However, revenue surpassed the Zacks Consensus Estimate of $81 million.
Overall, Iconix has a diversified portfolio of brands. It builds its brand portfolio by acquiring new brands, entering into joint ventures or other partnerships, each of which enhances the company’s brand management expertise and existing infrastructure. Most recently, Iconix completed its acquisition of the renowned football brand Umbro from Nike, Inc. (NKE - Analyst Report) in order to strengthen its brand portfolio.
With this acquisition, the company now comprises 29 consumer brands in the fashion, athletics, electronics, entertainment and home industries. The company remains focused on international expansion and expects many more acquisitions in 2013 with improvement in Men’s businesses.
Iconix has direct-to-retail agreements with several retail giants like Walmart Stores, Inc. (WMT - Analyst Report), Target Corp. (TGT - Analyst Report), Kohl’s Corp (KSS - Analyst Report) and Macy’s Inc. (M - Analyst Report). Iconix makes use of the brand name of these retail giants as well as their floor space. In Europe, Iconix launched two direct-to-retail partnerships, Material Girl with Otto and Ocean Pacific with UK-based SportsDirect during the second quarter. Moreover, the long-term agreements and brand exclusivity contracts are incentives to retailers and they make efforts to promote Iconix’s products, which in turn helps to boost the brand’s sales.
Also, the company has been expanding in the emerging markets and has formed four international joint ventures (Iconix China, Iconix Latin America, Iconix Europe and Iconix India) and a 55% owned joint venture (OP Japan).
However, unfavorable currency translations may increase the company’s cost of goods sold, thereby resulting in decreased consumption, gross margins and ultimately earnings. Competition from peers also remains a hurdle.
Currently, Iconix holds a Zacks #3 Rank (short-term Hold rating).
Please login to Zacks.com or register to post a comment.