Iconix raises guidance on Buffalo buy
NEW YORK — Iconix Brand Group has gained a controlling stake of the apparel brand, Buffalo David Bitton from Buffalo International.
Iconix now owns 51% of the brand and as part of the deal, formed a new joint venture company with Buffalo International. Iconix will control this joint venture and consolidate its results. Buffalo International will be the core licensee for the new joint venture.
Founded in 1985, Buffalo is a lifestyle brand consisting of denim, sportswear, activewear, and accessories. Buffalo is primarily sold through better department stores including Macy's, Dillard's and Lord & Taylor, and has 30 stand-alone retail stores, mainly in Canada, operated by the core licensee.
Neil Cole, CEO, Iconix Brand Group, Inc., commented, "The Bitton brothers have built a powerful lifestyle brand. We look forward to leveraging our licensing and brand management expertise to further grow the business and expand its retail footprint in the U.S. and Canada, as well as internationally."
In relation to the acquisition, Iconix has raised its 2013 revenue guidance to a range of $415 to $425 million from $395 to $405 million. The company is raising its 2013 non-GAAP diluted EPS guidance to a range of $2.00 to $2.10 from $1.85 to $1.95, and its 2013 GAAP diluted EPS guidance to a range of $1.90 to $2.00 from $1.75 to $1.85.