Iconix Brand Group
Hanesbrands, Carter's top Citi's small/mid cap apparel list
Top pick: Hanesbrands (HBI) "We are constructive on HBI margin expanding, deleveraging, and cash flow story. Now that we are beyond christian louboutin boots the high cotton costs, we expect margins to expand from higher selling prices, Gear synergies, supply chain savings, and lower costs."Runner Up: Carter (CRI) "Our positive view is driven by our expectation for: 1) mid single digit top louboutin wedding shoes line growth over the next several years (retail expansion, international, e commerce); 2) EBIT margin expansion (supply chain restructuring, mix shift to higher margin retail, e Commerce, international) driving double digit EPS growth; mulberry outlet online and 3) company commitment to return cash to shareholders. In the near term, CRI gross margins will be impacted by higher labor costs, but still expect margins to expand from mix improvement (ecommerce)."Firm has Buy rating on HBI and mulberry outlet store CRI, as well as Children's Place (PLCE), and Neutral rating on Columbia Sportswear (COLM), Gildan Activewear (GIL), and Iconix Brand Group (ICON).
Fresh off buying Juicy Couture from Fifth Pacific, P E backed Authentic Brands mulberry satchel is now in the hunt for the licensing rights for Elvis Presley and Muhammed Ali which are being sold by Core Media. Iconix Brand (ICON +0.2%) and a consortium which includes Sony (SNE 2.2%) is also in the mix for the assets. The big picture: mulberry bag outlet Buying the rights to dead celebrities has paid off for fashion brands in the past that hit the right sentimentality nerve with consumers.
In what WSJ calls "a new sign of risk aversion in the asset backed securities market," louboutin outlet Iconix Brand Group (ICON) pays 4.375% to sell $275M in notes backed by licensing fees from brands like Candie's and Sharper Image. This was more than the 4 4.25% expected and is emblematic of the shifting environment for higher yielding christian louboutin discount assets. For ICON though, the result of the offering might prove the wisdom inherent in the deal according to the Journal, the company "sold the debt because it was concerned it might have to pay higher rates in the future."