=Iconix Brand (ICON) : Starter collection on Amazon

Iconix Brand announces 'the wind down of the DanskinNow brand at Walmart, the amendment of its senior secured term loan, a new exclusive Starter collection on Amazon, and the dismissal of pending securities class action lawsuits'

• Co has been informed by Walmart that the DanskinNow license, which is a diffusion of the Danskin brand, will not be renewed beyond January 2019.
  • As a result, royalty revenue for the Danskin brand is estimated to decline ~$15.5 million in 2018.
• Due to certain developments, including the transition of the Danskin brand, the Company forecasted that it would unlikely be in compliance with certain of its financial debt covenants in 2018.
  • As a result, the Company recently engaged in discussions with its lenders to provide relief under its financial debt covenants and entered into an amendment of its senior secured term loan facility.
  • As part of those negotiations, the Company agreed to reduce the size of the credit facility by ~$75 million to $225 million.
• Starter is now available on Amazon exclusively to tens of millions of Prime members at www.amazon.com/starter.
• The company expects to report third quarter 2017 financial results by early next week.

Iconix Brand (ICON) reported earnings on Tue 8 Nov 2016 (b/o)

** charts after earnings **

• EOD, daily

Iconix Brand beats by $0.04, beats on revs; lowers FY16 outlook  :

• Reports Q3 (Sep) earnings of $0.19 per share, $0.04 better than the Capital IQ Consensus of $0.15; revenues fell 0.4% year/year to $90.9 mln vs the $88.91 mln Capital IQ Consensus.
• Co issues guidance for FY16, sees EPS trending to low end of $1.06-1.21 vs. $1.12 Capital IQ Consensus Estimate; sees FY16 revs of $3-5 mln below low end of $370-390 mln vs. $371.13 mln Capital IQ Consensus Estimate. 
• "I am pleased to report that Iconix delivered another solid quarter. Performance across the brands was mixed, but with our balanced portfolio of brands and the Company's attractive margins, we were able to achieve stable revenue, increased profits and healthy free cash flow. We look forward to sharing details about our vision and our growth plan at our upcoming investor day next Tuesday, November 15th." 
• On November 4, 2016, the Company received a letter from the Staff of the U.S. Securities and Exchange Commission - Division of Corporate Finance, formally communicating that the Staff has completed its review of the Company's Forms 10-K for the years ending December 31, 2013 through 2015.

Iconix Brand (ICON)

Iconix Brand (ICON) reported earnings on 6 Nov 2016 (b/o)