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What: Shares of consumer brand owner Iconix Brand Group
So what: There are two things that investors don't want to hear during earnings season from a company they own: That it missed earnings and that it's cutting full-year guidance. Iconix investors heard both today. For the first quarter, the parent of Rocawear and Mossimo managed $0.43 in adjusted earnings per share, down from $0.45 in the same quarter last year and short of the $0.46 analysts were expecting. Revenue also fell from 2011 and the $88.5 million tally missed the average Wall Street estimate of $94.7 million.
Now what: More troubling for investors may be the fact that the company reduced its full-year forecast from a range of $1.77 to $1.84 to a range of $1.65 to $1.74. Management blamed softness in its men's business -- specifically Rocawear, Ecko, and Ed Hardy. In its press release, Iconix CEO Neil Cole offered a relatively generic (paraphrasing here) "We're really in great shape, there are some short-term challenges, but don't worry about that." Whether or not that turns out to be the case will be a great test of how much faith shareholders can put in management's assessments.
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Fool contributor Matt Koppenheffer does not have a financial interest in any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter @KoppTheFool or Facebook. The Fool's disclosure policy prefers dividends over a sharp stick in the eye.