Iconix Shares Sink on Forecast

NEW YORK (TheStreet) -- Shares of Iconix Brand(ICON) are tumbling after the apparel maker released a disappointing 2010 outlook.

Despite posting a 25% jump in third-quarter profit, shares are down 6.6% to $12.49 in afternoon trading.

During the third-quarter the maker of Mossimo and Joe Boxer said it earned $20.5 million, or 28 cents a share, compared with $16.4 million, or 27 cents, in the year-ago period.

Excluding one-time charges income was 31 cents a share, higher than the 28 cents analysts expected.

Revenue edged up 8% to $59.4 million from $55.1 million last year.

Iconix expects 2010 earnings in the range of $1.25 to $1.30 a share, below Wall Street's consensus of $1.34 a share.

Earlier today that company said it is taking a controlling interest in Ecko's portfolio of brands. Iconix will pay $63.5 million for the 51% stake, and the joint venture will get $90 million of financing.

Iconix expects to reap about $42 million to $44 million in annual royalty revenue from the deal.

-- Reported by Jeanine Poggi in New York

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