Iconix Brand Group, Inc. (ICON) Avoids the Hard Knock Life

Iconix Brand Group, Inc. (ICON) Avoids the Hard Knock Life


Iconix Brand Group, Inc. (ICON) has been popping as of late, and it might be for a very surreal reason: Jay-Z. The New York rapper postponed an arbitration case against the clothing brand ICON, who he sold his Rocawear line to in 2014. ICON has written off the majority of the brands value, and the rapper sued. However, recently he filed a case saying there were no arbitrators of color who could hear his case and believed this was unconstitutional.

“It would stand to reason that prospective litigants – which undoubtedly include minority owned and operated businesses – expect there to be the possibility that the person who stands in the shoes of both judge and jury reflects the diverse population,” the petition said.

Iconix Brand Group, Inc. (ICON)owns, licenses and markets a growing portfolio of consumer brands including: CANDIE’S ®, BONGO ®, JOE BOXER ®, RAMPAGE ®, MUDD ®, MOSSIMO ®, LONDON FOG ®, OCEAN PACIFIC ®, DANSKIN ®, ROCAWEAR ®, CANNON ®, ROYAL VELVET ®, FIELDCREST ®, CHARISMA ®, STARTER ®, WAVERLY ®, ZOO YORK ®, UMBRO ®, LEE COOPER ®, ECKO UNLTD. ®, MARC ECKO ®, ARTFUL DODGER ® and HYDRAULIC ®. In addition, Iconix owns interests in the MATERIAL GIRL ®, ED HARDY ®, MODERN AMUSEMENT ®, BUFFALO ® and PONY ®brands. Iconix licenses its brands to a network of leading retailers and manufacturers that touch every major segment of retail distribution in both the U.S. and worldwide.

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What this means for ICON is that the pending arbitration is pushed back indefinitely and there balance sheet remains unscathed for the time being. This is good news as the brand had some trouble with Sears’s recent implosion. In their November earnings call, the new CEO did look to the international market as an important boost for the brand”

“One of the pleasant surprises I have encountered has been the international partner network currently in place that we need to build upon. Our best product offerings should not be limited to just one market or one territory but should be available to each market to reduce cost for everyone and improve sales for the brands. There needs to be more global brand collaboration.”

The interim CFO Jeffrey Neil Wood highlighted those exact numbers:

“Our international division continues to be a strong contributor to our business. In Q3, our international business grew 26% over last year and is up 13% year-to-date. The international business is driven by 6 key brands anchored by Umbro and Lee Cooper, who have performed very well especially in Europe, India and China.”

Iconix Brand Group, Inc. (ICON) has a 19.9M market cap and a float of 59.41M with shorts holding 14% of the float. ICON has some brands that most of us will recognize, but this recent action might be short lived. We will be checking back on ICON to see where they are after this news runs the course. Sign-up for continuing coverage on shares of $ICON stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in $ICON, either long or short, and we have not been compensated for this article.

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