Back to top

Analyst Blog

Iconix Brand Group, Inc. (ICON - Analyst Report) posted fourth quarter 2012 adjusted earnings of 41 cents per share, flat compared to the year-ago quarter. The results were ahead of the Zacks Consensus Estimate of 38 cents by 7.8%.

Quarter in Detail

Total revenue in the quarter declined 10.9% year over year to $85.1 million, due to year-over-year decline in the Men’s businesses and transition of the Royal Velvet license. However, revenue surpassed the Zacks Consensus Estimate of $83 million.

On a year-over-year basis, earnings before interest, taxes, depreciation, and amortization (EBITDA) decreased 12.7% to $50.0 million in the fourth quarter.

Iconix exited the quarter with free cash flow of $37.9 million, compared with $43.2 million at the end of the third quarter of 2012. In anticipation of full use of the $200 million share repurchase program which was authorized in October 2011, Iconix has announced a new share repurchase program to repurchase up to $300 million of its common stock over a three-year period.

Full Year 2012 Results

For the full year 2012, Iconix posted adjusted earnings of $1.70 per share, up a penny from the year-ago level. The results were ahead of Zacks Consensus Estimate of $1.66 by 2.4%.

Total revenue in the year declined 4.3% from 2011 to $353.8 million. Revenue also surpassed the Zacks Consensus Estimate of $350 million.

Recent Acquisition

On Feb 20, 2013 Iconix acquired the renowned lifestyle brand Lee Cooper for $72 million in cash through the company's Luxembourg subsidiary, Iconix Luxembourg Holdings Sarl. The acquisition will strengthen its brand portfolio and also help Iconix to expand in important international markets, which now account for 33% of its overall business.

In Feb 2013, Iconix formed a joint venture with Buffalo International ULC to acquire a 51% interest in the latter’s Buffalo David Bitton brand for $76.5 million in cash. According to the deal, Buffalo International will be the core licensee for the joint venture. Iconix will control the joint venture, manage the brand’s operations and expand its retail footprint in the U.S. and Canada.

The brand offers denim, sportswear, activewear, and accessories that are primarily sold through 3000 department stores including Macy's Inc. (M - Analyst Report) and Dillard's Inc (DDS - Analyst Report) and specialty store locations in over 18 countries around the world. It also has 30 standalone retail stores, mainly in Canada.

Again, in early-Dec 2012, the company added sports apparel and footwear brand, Umbro from its peer Nike Inc. (NKE - Analyst Report) to further strengthen its diversified portfolio.


To account for the effect of the acquisition of Lee Cooper, Iconix raised its 2013 adjusted earnings guidance to $2.05-$2.15 from the previously announced range of $2.00-$2.10. Iconix also raised its revenue guidance to $425-$435 million from $415-$425 million. Currently the stock carries a Zacks Rank #3 (Hold).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UTD THERAPE… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%