NEW YORK-Reductions in expenses offset a soft sales quarter as Iconix’s net income edged up 2 percent in its third quarter, to $31.6 million.
The brand management company slimmed selling, general and administrative expenses by 2.1 percent in the quarter, which ended on Sept. 30. In addition, interest expense was cut by 43 percent. Net sales dived 6.6 percent to $86.6 million.
Neil Cole, Iconix’s chairman and CEO, said the company has put forth “several exciting initiatives” that provide the seeds for long-term growth, including its acquisition of the Umbro brand and the debut of a new Peanuts movie. In addition, Iconix remains focused on expansion in international markets, which, Cole said, can grow to about 40 percent of the company’s total business.
Iconix also has what Cole termed “a strong acquisition pipeline” and continues to evaluate opportunities that could come to fruition in the near term. “With 29 brands in our portfolio, inclusive of Umbro, that represent over $13 billion in annual retail sales, we believe our company is stronger than ever,” he said.