NEW YORK (TheStreet) -- Shares of Iconix Brand Group (ICON) - Get Report were falling 51.7% to $7.80 on Friday after the apparel company announced it will restate certain financial statements from 2013 to 2015, and cut its full year guidance.

Iconix said that its audit committee concluded the company will restate its financial results for the fourth quarter and full year 2013, every quarter of 2014, full year 2014, and the first and second quarter of 2015 to correct accounting errors.

The company believes the adjustments will cut its 2014 operating income by about $6 million and its first half 2015 operating income by about $1.6 million.

Iconix said it now expects licensing revenue of $370 million to $380 million for full year 2015, down from a range of $410 million to $425 million. The company expects zero "other revenue" for the year, down from its guidance range of $5 million to $15 million for the year.

The company also lowered its 2015 EPS guidance to a range of $1.35 to $1.40 a share, down from $2 to $2.15 a share for the year.

Analysts expect Iconix to report earnings of $2.08 a share and revenue of $421.73 million for full year 2015.

About 5.4 million shares of Iconix were traded by 9:46 a.m. Friday, well above the company's average trading volume of about 1.3 million shares a day.

TheStreet Ratings team rates ICONIX BRAND GROUP INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

We rate ICONIX BRAND GROUP INC (ICON) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • ICON's revenue growth trails the industry average of 15.4%. Since the same quarter one year prior, revenues slightly increased by 0.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The gross profit margin for ICONIX BRAND GROUP INC is currently very high, coming in at 100.00%. ICON has managed to maintain the strong profit margin since the same quarter of last year. Despite the mixed results of the gross profit margin, ICON's net profit margin of 14.99% compares favorably to the industry average.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Textiles, Apparel & Luxury Goods industry. The net income has significantly decreased by 58.2% when compared to the same quarter one year ago, falling from $35.32 million to $14.77 million.
  • Currently the debt-to-equity ratio of 1.53 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Along with the unfavorable debt-to-equity ratio, ICON maintains a poor quick ratio of 0.78, which illustrates the inability to avoid short-term cash problems.
  • You can view the full analysis from the report here: ICON

Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.