- Prachi Singh |
Iconix Brand Group in its preliminary financial results announcement for the third quarter ended September 30, 2017 said that the company expects licensing revenue for the third quarter of 2017 to be approximately 53.2 million dollars, a 12 percent.
The company added that revenue in the prior year's third quarter included approximately 2.3 million dollars of licensing revenue from the Sharper Image brand which was sold in the fourth quarter of 2016 and approximately 1.3 million dollars of revenue from its Southeast Asia joint venture which was deconsolidated in the second quarter of 2017. Excluding Sharper Image and Southeast Asia, revenue declined approximately 7 percent in the third quarter of 2017.
Iconix reveals preliminary Q3 results
The company added that it has not yet finalized its impairment analysis, however, as a result of such testing which will be completed prior to the filing of the company's Form 10-Q for the period ended September 30, 2017, the company expects to recognize a non-cash intangible asset impairment charge of approximately 500 million dollars to 750 million dollars primarily related to the women's segment. The company also expects to have a non-cash tax charge of approximately 15 million dollars related to the write off of certain deferred tax assets.
The company expects GAAP diluted EPS from continuing operations excluding the impairment charge, to be a loss of approximately 0.10 dollar compared to earnings of 0.25 dollar in the third quarter of 2016. The loss of 0.10 in the third quarter includes the non-cash tax charge of approximately 15 million dollars or 0.26 dollar per share.
Non-GAAP diluted EPS from continuing operations is expected to be approximately 0.24 dollar compared to 0.18 dollar in the third quarter of 2016.