Iconix Caps Record Q3 With $25M Investment in Complex Media

10/29/2013
Iconix Brand Group capped off a record third quarter with more than $107 million in revenue, up 24 percent year over year, and total year-to-date revenues up 22 percent over 2012.

The company's strong growth is being driven by it's international business, which is expected to double this year and to account for more than one third of its overall business. "This is up from just 6 percent just a few years ago, and we estimate this will grow to approximately 40 percent of our revenue in 2014," CEO Neil Cole recently told analysts.

As part of its global expansion strategy, Iconix acquired three additional international brands and now maintains seven joint ventures, including two new partnerships formed in September and October with Pacific Brands of Australia and New Zealand, and Li & Fung, respectively. The latter should contribute $3.5 million in revenue, CFO Warren Clamen said.

In early fall, Iconix invested $25 million in Complex Media, a multimedia lifestyle company and top digital marketer targeting Millennial men who are likely to wear such Iconix brands as Ecko Unlimited, Rocawear, Zoo York and Billionaire Boys Club. Iconix believes the partnership will help the company better reach its core customers.

While the very fact that Complex is one of the rare profitable media companies, which Cole said is "exciting to see," the partnership's potential lies in the media firm's extensive reach. "They have over 100 websites that all aggregate and this amazing platform that really is the leader talking to millennial males, which is really hard for us to reach because they don't really read fashion books and they're really online," Cole added.

"We felt it was a good below-the-line investment that was strategic for all the men's brands, which have been the weakest part of our portfolio over the last couple of years," he continued.  "It was a strategic investment that helps shore the men's business, which we think is going to be very profitable."
X
This ad will auto-close in 10 seconds