NEW YORK–Iconix Brand Group, holder of a portfolio of consumer brands, including Cannon, Royal Velvet, Fieldcrest and Charisma in home textiles, has altered its outlook for revenue and net income for 2008.
The company now expects revenue for this year to fall within the range of $215 million to $220 million, down from its previous prediction of from $250 million to $260 million. Net income is forecast to finish the year at $71 million, down from the previous estimate of $74 million. The new guidance relates to Iconix’s existing portfolio of brands only and includes no revenue assumptions from acquisitions, according to a company statement, whereas its previous guidance included about $30 million of revenue from new brand acquisitions.
Neil Cole, chairman and chief executive officer, said Iconix remains a “strong company that, despite a very challenging macroeconomic environment, will generate at least $116 million in free cash flow this year and has many compelling long-term growth opportunities.”
Yesterday, Iconix’s share price finished trading at $12.90, up from $12.34 at the close of Friday’s trading but down from $13.30 at the close of trading on Thursday. Iconix’s stock has declined by almost half its 52-week high, reached on Sept. 27 of last year at $24.48 a share.