This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Iconix Brand Group's CEO Presents At Goldman Sachs 2012 Global Retailing Conference (Transcript)

What this business model does for us? It gives us transparency in earnings. As far as today, we have $700 million guaranteed royalties over the initial term of our agreements without renewals, which we've shown a pretty high record of renewal. The company has no operational risk or inventory risk, we've generated a very strong cash flow and we have minimal working and CapEx needs.

Diversification has been an important part of our strategy over the last few years. We look at diversification in three ways. Ones in the middle, you see a pyramid of all different types of retailers. Our brands are placed throughout the supply chain, we have a lot more business in the value chain, which is where more business is actually done, in the Walmart, Kmart, Target arena. We have pretty strong brands in the mid-tier, our Kohl's and other various partners in there and a big group of our brands are in the better area, our Macy's, Dillard's, Nordstroms and a few in the high end in the luxury side, but we are pretty diversified in who we do deals with and where our brands are distributed.

Also, very important to specify in that we are not just in "fashion business.". Even under the fashion headline a lot of those businesses are basics. We sell a whole lot of socks and a whole lot of white T-shirts and lot of towels. We also have a nice home business with five brands and our character business that's driven by the Snoopy is also an important, and we believe we will continue to diversify all three of these areas are an important part of our portfolio strategy.

A big impetus of our growth over the last few years is what we call our DTR model. DTR is direct-to-retail, and here we have made agreements directly with Walmart has three agreements, directly with Target has two agreements, Kohl's, and vice versa throughout this list of the best retailers in America, and hopefully soon around the world. What this relationship does? It gives the retailer a brand that people know that's very strong and kind of cutting out the middleman, who is usually charging 40% to 50% for these brands. Most of our partners have sourcing setups around the world, so now they have a powerful national brand without having to buy from someone in the middle with higher prices.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 16,351.38 +293.03 1.82%
S&P 500 1,948.86 +35.01 1.83%
NASDAQ 4,749.9790 +113.8740 2.46%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs