Sequential Brands revenues slip 5% in Q3
New York-based brand management company Sequential Brands Group, Inc. reported $24.0 million in revenues for the third quarter on Monday, a 5% year-over-year decline, driven by the effects of Covid-19. In the same period in the previous year, the group posted $25.4 million in revenues.
For the third quarter ended September 30, 2020, Sequential’s net income from continuing operations came to $4.5 million, or $2.71 per diluted share, up from a loss of $18.4 million, or $11.31 per diluted share, in the prior-year period.
This bottom-line improvement was related to the fact the group was able to reduce its operating expenses from $12.2 million to $8.7 million. The third quarter of the previous year was also affected by $33.1 million in impairment charges.
Sequential owns the Jessica Simpson, Gaiam, Avia and William Rast brands, among others, and also works with a range of licensees.
Year to date, the group’s total revenue came to $66.8 million, falling 14% from $77.3 million in the same nine-month period in the previous year. The company’s loss from continuing operations in the period was $83.8 million, or $50.96 per diluted share, compared to a loss of $26.4 million, or $16.36 per diluted share, in the previous year.
“The impact of the Covid-19 pandemic and the pace at which there are new developments has created significant uncertainty in the current economic environment,” explained the company in a release.
“The impacts of Covid-19 have adversely affected our near-term and long-term revenues, earnings, liquidity and cash flows as certain licensees have requested temporary relief or deferred making their scheduled payments,” the group added.
Due to the continued uncertainty caused by the health crisis, Sequential did not provide financial guidance for the fourth quarter or the full fiscal year.
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