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Iconix Licensing Revenue Down in Q2, Hugo Boss to Close 20 More Stores

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Hugo Boss

Iconix

Licensing revenue declined 2 percent to $95.7 million in the second quarter ended June 30 at Iconix Brand Group (ICON), pulled down mainly by men’s, which plunged 16 percent. Women’s licensing revenue decreased 3 percent, which the New York-based consumer brands company blamed on the sale of the Badgley Mischka brand in Q1. By type, direct-to-retail licenses were down 8 percent, while wholesale fell 2 percent. Geographically, licensing revenue jumped 34 percent in Japan but decreased 5 percent in the U.S. As such, profits were down 16 percent to $11.6 million, or 23 cents per diluted share. The company’s stock increased by more than 10 percent in early trading Friday to $7.26.

Hugo Boss

Germany’s Hugo Boss introduced a series of measures to improve its operating efficiency in the first half of fiscal 2016, including a disciplined pricing policy and reduced costs, but its troubles are far from over. The group’s net income nosedived by 84 percent in the second quarter, from 71 million euro ($78.55 million) to 11 million euro ($12.2 million), and as many as 20 freestanding retail stores around the world will close over the next 18 months.

Hugo Boss sales fell 4 percent to 622 million euro ($688 million) in Q2, as weak tourist traffic trampled business in France and Benelux and a difficult retail landscape sent U.S. sales sliding 21 percent. Sales in Asia were also down by a currency-adjusted 6 percent, thanks to a 16 percent decline in China, with weakness primarily in Hong Kong and Macau. For that reason, double-digit growth rates in Latin America and Britain as well as increases in Canada only partially made up for poor performance elsewhere. The company now expects currency-adjusted sales to be stable or decline by 3 percent in the full year.

Yoox Net-a-Porter

A month after Yoox Net-a-Porter Group (YNAP) aimed for 20 percent annual revenue growth through 2020, the luxury company is well on its way to meet that goal. Net revenues in the second quarter ended June 30 rose 13 percent to reach 451 million euros ($499 million) as sales grew across all business lines, particularly in Europe (excluding the U.K.), Asia-Pacific and the Middle East. This helped push adjusted profits up 15 percent in the first half of fiscal 2016 to 37 million euros ($40.9 million).

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