Sequential Brands Group Inc. has posted its first financial report since completing the sale of the Martha Stewart and Emeril Lagasse brands.
The New York-based firm — parent to the Jessica Simpson Collection, the wheeled-footwear label Heelys and the skate shoe brand DVS — logged revenues of $26.4 million during the second quarter, compared with $33.1 million in the prior year. It recorded a net loss of $2.6 million, or a 4-cent loss per share on an adjusted basis, versus 2018’s earnings of $4.5 million, or 7 cents per diluted share. (Wall Street had forecast earnings of 7 cents a share.)
In a statement, CEO Karen Murray noted the ongoing transformation at Sequential following the divestiture of the Martha Stewart and Emeril Lagasse labels, which were bought in mid-April by Marquee Brands — the licensing company that owns Bruno Magli, BCBG and Ben Sherman. It closed the sale two months ago in a deal worth $175 million, plus an earn-out opportunity of up to $40 million if the business achieves certain financial goals.
“The second phase [of that transition], which is currently under way, is right-sizing our operational cost structure to ensure it is aligned with the current business,” Murray added. “We are confident that we are on the right path to best position our business for 2020.”
During the company’s call with investors, Sequential also called out the positive performance of the Jessica Simpson brand at retailers Macy’s and Nordstrom, as well as on its recently launched e-commerce site, JessicaSimpson.com. (Next month, Simpson is expected to make an appearance on TV network HSN to promote her apparel and footwear lines.)
For the full year, the firm expects revenues to be in the range of $104 to $108 million.
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