With a wide array of retail partnerships, Iconix Brand Group, Inc.’s ICONinternational segment continues to expand steadily. However, dismal results in the company’s men’s and home segments have been posing concerns for a while. Also, such headwinds have weighed upon the company’s stock that declined 21.
2% in the past three months against the industry’s rise of 3.3%.Weak Segments Hurt Revenues
Increased competition seems to have taken a toll on the company’s men’s and home segments. During fourth-quarter 2017, sales at the Men’s category declined 30% while revenues from the home segment dipped 6%. Consequently, net licensing revenues went down 11% year on year. Moreover, due to such dismal segment performances, Iconix’s top line fell 7%, 10% and 13% year on year, during the third, second and first quarters of 2017, respectively. Persistent declines in top-line performance compelled management to provide dismal view for 2018. Management expects revenues in the range of $190-220 million, depicting a considerable fall from $225.8 million in 2017.