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Shares of Iconix Brand Group Inc (ICON - Free Report) touched a new 52-week high of $29.59 on May 13 following the announcement of solid first quarter 2013 results and an upbeat 2013 guidance on Apr 24, 2013. A number of accretive acquisitions made in the recent past also fueled the rise in stock prices. Shares of this Zacks Rank #1 (Strong Buy) stock previously touched a 52-week high of $29.45 on May 3.

Iconix’s share prices closed at $29.32 on May 13, recording a healthy return of 30.4%, year-to-date. The company’s long-term estimated EPS growth rate is 13.05%. Average volume of shares traded over the last three months came in at approximately 971K.

Solid First Quarter Performance

Iconix first quarter 2013 earnings of 54 cents per share beat last year’s result by 26% and the Zacks Consensus Estimate by 5.9%. Iconix’s revenues in the quarter surged 19% year over year and also surpassed the Zacks Consensus Estimate by 4%. The company’s acquisitions of iconic brands helped the company deliver a solid performance. Following solid first quarter 2013 earnings, Iconix raised its 2013 adjusted earnings guidance to $2.10–$2.20 per share from the previously announced range of $2.05–$2.15 per share.

Iconix successfully completed three acquisitions in the past five months. In late-Feb 2013, Iconix acquired the renowned lifestyle brand Lee Cooper, which includes multiple lifestyle categories including men’s and women’s casual wear, footwear and accessories. In early-Feb 2013, Iconix formed a joint venture with Buffalo International ULC to acquire 51% interest in the latter’s Buffalo David Bitton brand in order to expand its retail footprint in the U.S. and Canada. In early-Dec 2012, Iconix acquired the renowned football brand Umbro from Nike, Inc. (NKE - Free Report) to further strengthen its portfolio with an iconic brand that focuses on the fashion, athletics, electronics, entertainment and home industries.

We remain impressed with Iconix’s strategic acquisitions and consistent expansion of licensing agreements. Iconix expects to explore additional opportunities and enhance its portfolio with more iconic brands in the upcoming quarters and deliver over 20% revenue and earnings per share growth for 2013.

Other Stocks to Consider

Other stocks in the consumer discretionary sector that are performing well and are therefore worth considering include Francescas Holdings (FRAN - Free Report) and Hanesbrands Inc (HBI - Free Report) , both of them carrying a Zacks Rank #2 (Buy).

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