* Takes 51 pct stake in Buffalo David Bitton brand for $76.5
* Raises FY 2013 earnings per share forecast to $2.00-$2.10
* Raises FY 2013 revenue view to $415 mln-$425 mln
By Maria Ajit Thomas
Feb 4 Iconix Brand Group Inc, known for
its apparel labels such as Candie's and Starter, acquired
control of the Buffalo David Bitton brand to expand into
Iconix said it paid Buffalo International ULC $76.5 million
in cash for a 51 percent stake in the brand.
"This diversifies them up the chain a little bit... their
exposure to the lower-end brands has been disproportionate and
(Buffalo) is certainly not a lower-end brand," C.L. King &
Associates analyst Steven Marotta said.
Under the Buffalo David Bitton brand, the company sells
denim, sportswear, activewear and accessories at upscale
department stores such as Macy's Inc and Lord & Taylor.
Iconix owns or licenses dozens of brands that are sold at
retail stores such as Wal-Mart Stores Inc and Sears
"The company is going to drive earnings higher as it puts
the balance sheet to work through a combination of acquisitions
and stock repurchases. Today's news reinforced that," Monness,
Crespi, Hardt, & Co Inc analyst Jim Chartier said.
Iconix bought the Umbro sneaker brand from Nike Inc
for $225 million last October and the worldwide license for the
Ed Hardy brand in April 2011.
The company said it raised its full-year revenue and
earnings per share forecast to reflect the Buffalo deal and
share repurchases. It now expects to earn between $2.00 and
$2.10 per share, up from $1.85 to $1.95 per share.
Iconix expects revenue of between $415 million and $425
million, up from $395 million to $405 million.
Analysts on average were looking for full-year profit of
$1.92 per share, on revenue of $399.62 million, according to
Thomson Reuters I/B/E/S.
Shares of the company, which has a market valuation of about
$1.65 billion, were down slightly at $23.99 on Monday morning on