Iconix Brand Reports Preliminary Q3 Results

(RTTNews) - Iconix Brand Group Inc. (ICON) said that it expects GAAP EPS from continuing operations for the third quarter of 2017, excluding the impairment charge, to be a loss of approximately $0.10, as compared to earnings of $0.25 in the third quarter of 2016.

The earnings of $0.25 in the third quarter of 2016 included approximately $0.18 per share related to a gain on the sale of our equity interest in Complex Media. The loss of $0.10 in the third quarter of 2017 includes the non-cash tax charge of approximately $15 million or $0.26 per share.

The Company expects non-GAAP EPS from continuing operations for the third quarter of 2017 to be approximately $0.24, as compared to $0.18 in the third quarter of 2016.

The Company expects licensing revenue for the third quarter of 2017 to be approximately $53.2 million, a 12% decline as compared to $60.5 million in the prior year quarter. Revenue in the prior year's third quarter included approximately $2.3 million of licensing revenue from the Sharper Image brand which was sold in the fourth quarter of 2016 and approximately $1.3 million of revenue from its Southeast Asia joint venture which was deconsolidated in the second quarter of 2017. As a result, there was no comparable revenue for these items in the third quarter of 2017. Excluding Sharper Image and Southeast Asia, revenue declined approximately 7% in the third quarter of 2017.

The company believes that, excluding the impact of the intangible asset impairment charge, full year 2017 results will be within previously issued guidance.