Iconix Brand Group Acquires A 51% Interest In Buffalo Brand
Iconix Raises 2013 Revenue and Diluted EPS Guidance
NEW YORK, Feb. 4, 2013
NEW YORK, Feb. 4, 2013 /PRNewswire/ --Iconix Brand Group, Inc. (NASDAQ: ICON)
("Iconix" the "Company") today announced that it has acquired a 51% interest
in the Buffalo David Bitton® ("Buffalo") brand from Buffalo International ULC,
owned by David Bitton and his brothers. To acquire the trademark, Iconix
formed a new joint venture company with Buffalo International ULC. Iconix will
control this joint venture and consolidate its results. Buffalo International
ULC will be the core licensee for the new joint venture.
Founded in 1985, Buffalo is a lifestyle brand consisting of denim, sportswear,
activewear, and accessories. Buffalo is primarily sold through better
department stores including Macy's, Dillard's and Lord & Taylor, and has 30
stand-alone retail stores, mainly in Canada, operated by the core licensee.
Neil Cole, CEO, Iconix Brand Group, Inc., commented, "The Bitton brothers have
built a powerful lifestyle brand. We look forward to leveraging our licensing
and brand management expertise to further grow the business and expand its
retail footprint in the U.S. and Canada, as well as internationally."
Gabriel Bitton, CEO, Buffalo International ULC, commented, "Iconix is
recognized as the leader in brand management and has a strong track record of
building worldwide brands. We are excited to be working with Neil Cole and the
rest of the Iconix team to grow Buffalo to the next level through Iconix's
strong and proven global platform."
For its 51% interest in Buffalo, Iconix paid $76.5 million in cash. On an
annualized basis, the Company expects the Buffalo brand to generate
approximately $25 million in royalty revenue with an EBITDA margin of
approximately 75-80% for the new joint venture.
The Company is raising its 2013 revenue guidance to a range of $415-$425
million from $395-$405 million. The Company is raising its 2013 non-GAAP
diluted EPS guidance to a range of $2.00-$2.10 from $1.85-$1.95, and its 2013
GAAP diluted EPS guidance to a range of $1.90-$2.00 from $1.75-$1.85.
The Company's increase in its guidance is related to the Buffalo acquisition
and increased share repurchase activity. To reflect the increased share
repurchases, the Company's weighted average diluted share count is estimated
to be approximately 67-68 million for 2013. Since the authorization of its
current $200 million share repurchase plan, the Company has repurchased
approximately $175 million or 13% of its shares outstanding.
About Iconix Brand Group, Inc.
Iconix Brand Group, Inc. owns, licenses and markets a growing portfolio of
consumer brands including: CANDIE'S (R), BONGO (R), BADGLEY MISCHKA (R), JOE
BOXER (R), RAMPAGE (R), MUDD (R), MOSSIMO (R), LONDON FOG (R), OCEAN PACIFIC
(R), DANSKIN (R), ROCAWEAR (R), CANNON (R), ROYAL VELVET (R), FIELDCREST (R),
CHARISMA (R), STARTER (R), WAVERLY (R), ZOO YORK (R), ED HARDY (R), SHARPER
IMAGE (R) and UMBRO (R). In addition, Iconix owns interests in the ARTFUL
DODGER (R), ECKO (R), MARC ECKO (R), MATERIAL GIRL (R), PEANUTS (R), TRUTH OR
DARE (R) and BUFFALO (R) brands. The Company licenses its brands to a network
of leading retailers and manufacturers that touch every major segment of
retail distribution from the luxury market to the mass market in both the U.S.
and worldwide. Through its in-house business development, merchandising,
advertising and public relations departments Iconix manages its brands to
drive greater consumer awareness and equity.
Buffalo David Bitton® is an internationally renowned lifestyle brand. Founded
in 1985, Buffalo branded apparel and accessories can be found in more than
3,000 better department and specialty store locations in over 18 countries
around the world. Buffalo is committed to its heritage of marketing the best
quality fashion for men, women and children.
Iconix Brand Group, Inc.
VP, Public Relations
Iconix Brand Group, Inc.
SOURCE Iconix Brand Group, Inc.
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