Iconix Brand Group, Inc. reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2018. For the quarter, licensing revenue was $50,212,000 against $61,647,000 a year ago. Operating loss was $94,586,000 against operating income of $15,875,000 a year ago. Loss before income taxes was $77,942,000 against $15,449,000 a year ago. Net loss was $75,138,000 against $9,948,000 a year ago. Net loss attributable to the company was $79,429,000 against $13,852,000 a year ago. Loss per share continuing operations – basic and diluted was $1.26 against $0.26 a year ago. Loss per share – basic and diluted was $1.26 against earnings per share basic and diluted of $0.74 a year ago. Non-GAAP net income & EPS from continuing operations was $7,655,000 or $0.12 per share against $15,170,000 or $0.26 per share a year ago. Net cash provided by operating activities was $17,274,000 against $8,114,000 a year ago. Capital expenditures were $284,000 against $576,000 a year ago. Adjusted operating income was $27,668,000 against $37,883,000 a year ago. The decline in adjusted operating income and adjusted operating margin is primarily due to the decline in licensing revenue from the transition of its Danskin, OP and Mossimo DTR's.

For the six months, licensing revenue was $98,761,000 against $120,370,000 a year ago. Operating loss was $79,050,000 against operating income of $49,489,000 a year ago. Loss before income taxes was $45,676,000 against $2,364,000 a year ago. Net loss was $44,522,000 against $2,750,000 a year ago. Net loss attributable to the company was $51,670,000 against $9,136,000 a year ago. Loss per share continuing operations –diluted was $0.91 against $0.19 a year ago. Loss per share – basic and diluted was $0.91 against earnings per share basic and diluted of $0.65 a year ago. Non-GAAP net income & EPS from continuing operations was $13,824,000 or $0.22 per share against $27,879,000 or $0.48 per share a year ago. Net cash provided by operating activities was $39,348,000 against $20,015,000 a year ago. Capital expenditures were $571,000 against $755,000 a year ago. Adjusted operating income was $50,206,000 against $73,659,000 a year ago. Free cash flow was $31.4 million.

For the year 2018, the company anticipates lower end of full year revenue guidance of $190 million to $220 million. The company expects GAAP net income guidance now a loss of approximately $94.4 million to $104.4 million, principally due to a second quarter trademark and goodwill impairment. The company anticipates low end of full year non-GAAP net income guidance of $20 million to $30 million. The company reiterates full year free cash flow guidance of $50 million to $70 million.

In the second quarter of 2018, the company recorded a non-cash trademark charge of $73.3 million in the women's segment related to a write-down in the Mossimo trademark.  The Company also recorded a non-cash goodwill impairment charge of $37.8 million in the women's segment as a result of the impairment of the Mossimo trademark.