Iconix Brand Group Gains 5% Following Sale Of Luxury Brand For $16 Million

Shares of Iconix Brand Group Inc ICON were trading higher by more than 5 percent on Wednesday after the company announced the sale of its luxury brand Badgley Mischka IP.

Iconix Brand said it sold the rights for its Badgley Mischka IP brand to Titan Industries.

Iconix Brand acquired Badgley Mischka IP in 2004 and reached the decision to sell the brand as the time and resources required to properly support it are not in line with the rest of the Iconix portfolio.

Iconix Brand added that it remains focused on lines that generate significant volume through both direct-to-retail relationships and global networks.

Finally, the company noted that the sale of the brand is not reflected in its current guidance and will provide an updated 2016 outlook when it reports its fourth quarter results.

Peter Cuneo, Chairman and Interim CEO of Iconix, commented, "As part of the comprehensive review that we have been conducting over the past several months, we have been evaluating each brand in the portfolio and have been identifying where our time and resources are best spent. Badgley Mischka is a strong brand, and we believe it is in good hands with Mark, James, and Titan. However, we felt that it was in the best interest of our Company to divest this non-core asset and allocate our resources to our larger volume, higher margin brands. We expect to continue to evaluate opportunities to further rationalize the portfolio and maximize shareholder value."