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Matthew Dow  

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  • Iconix Brand Group: Strong Business Of Well Known Brands Worthy Of Your Portfolio [View article]
    Alpha thanks for the comment. one thing to be aware of is that Iconix owns the brands - not the actual clothing. So they license the brand to Walmart for example, signing a contract for a few years. Over the life of the contract they receive a fixed fee, but then this increases higher if sales are better since they get a percentage of the profit from sales. In many cases they have exclusive contracts with a particular box retailer for a brand. So it might be they dont have anything with TJ Maxx at the moment.

    But you are right, if the economy continues to improve it should be good for Iconix.
    Oct 5, 2012. 06:29 PM | 1 Like Like |Link to Comment
  • Iconix Brand Group: Strong Business Of Well Known Brands Worthy Of Your Portfolio [View article]
    Thanks for the comment Eddie. I agree their Shareholder friendliness is not as good as it could be. In my analysis of this aspect I only gave them a partial score (for share buybacks), but because of no ownership purchases or dividend yes it's not the best it could be. However they have created positive shareholder value in the past 10 years that you've owned the stock - not sure exactly when you bought in, but the rise in share price is something like $3/share to the current $18.48. That's an impressive gain, and alot better than the S&P 500 in the same period! So I think the company has shown a track record of impressive gains for shareholders, and they can continue this momentum in the coming years.
    Oct 1, 2012. 08:51 PM | Likes Like |Link to Comment
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