Playboy (PLA) is a fascinating stock. As with every trade, there are two sides to the story. One side will argue that the stock has bounced nicely off the 52-week low of $2.30, and that it has room to run as the concern continues to alter its model for making money. At some point, the bull might say, the market will become excited and buy the shares.

Interesting thesis. My argument against speculating with this idea is simple: it's Playboy. You might do well; you might not. I don't know how much plainer it can be.

Continue reading Playboy: Still a Risk

Playboy: Still a Risk originally appeared on BloggingStocks on Wed, 30 Jun 2010 09:30:00 EST. Please see our terms for use of feeds.

Madonna is pairing up with Iconix (ICON) to launch her own fashion line, MG Icon, which will be sold exclusively at Macy's.

The line will debut at about 200 stores in time for the back to school shopping season, with Madonna providing development and promotional services. The Wall Street Journal reports (subscription required) that "the collection of apparel, footwear, handbags and jewelry is expected to retail at $12 to $40. Growth plans include fragrance as well as expansion into additional Macy's stores. Macy's will be able to launch additional brands with the joint venture."

Continue reading Madonna Pairs Up with Iconix for Macy's Line

Madonna Pairs Up with Iconix for Macy's Line originally appeared on BloggingStocks on Thu, 11 Mar 2010 17:30:00 EST. Please see our terms for use of feeds.

Playboy (PLA) tends to be associated with the magazine and sex. Not the hardcore, nasty kind, of course -- Playboy has always been more than a tad distinguished, staying above board while the adult entertainment industry has chosen to compete in ways that my editor would delete if I even attempted.

With Iconix said to be interested in acquiring Playboy, it needs to think about where it can win with the ailing brand. The smart move may be to ditch the magazine and move away from sex -- it can't compete in either of these markets. Then, it needs to figure out how to make the brand relevant to everyone not in the Boomer generation ... or treat Playboy as an investment with a clock on it.

Continue reading Iconix could make Playboy work: Kill the mag, take the sex out of the brand

Iconix could make Playboy work: Kill the mag, take the sex out of the brand originally appeared on BloggingStocks on Sun, 22 Nov 2009 16:40:00 EST. Please see our terms for use of feeds.

It's wabbit season!

There's only good news for Playboy (PLA) when someone expresses an interest in buying it. Shares of the ailing men's lifestyle company shot higher on Thursday when word got out that Iconix is interested in acquiring it. Iconix owns and licenses brands to manufacturers and counts Candie's and London Fog among its holdings. A deal isn't a sure thing, but Playboy now has something it hasn't in a while: hope.

Iconix has been looking to acquire more brands. And Playboy has been looking for a knight in shining armor (and with a hefty war chest in tow) since at least June, when Scott Flanders took the helm. But it looked like acquisition bait well before then, thanks to a rough financial situation.

Continue reading Iconix sets its sights on Playboy

Iconix sets its sights on Playboy originally appeared on BloggingStocks on Fri, 13 Nov 2009 09:45:00 EST. Please see our terms for use of feeds.

Continue reading Debt may force Marc Ecko to surrender control of his brand

Debt may force Marc Ecko to surrender control of his brand originally appeared on BloggingStocks on Tue, 22 Sep 2009 16:15:00 EST. Please see our terms for use of feeds.

After filing for bankruptcy protection a month ago, Eddie Bauer Holdings Inc. (OTC: EBHIQ) is already seeing the suitors line up. Iconix Brand Group Inc. (NASDAQ: ICON), which owns Rocawear, is showing some interest. Hilco Consumer Capital and Gordon Brothers Group LLC are also looking to make a joint offer for the embattled clothing retailer, and Golden Gate Capital is said to be interested. Hudson Capital Partners LLC may throw its hat in the ring, as well.

Tomorrow's the bidding deadline, and there's an auction lined up for Eddie Bauer's assets on Thursday.

Already in the game, CCMP Capital Advisors ponied up $202 million in a "stalking horse bid," meaning that it will make the acquisition if nobody else beats its offer.

For now, Bauer's is living on borrowed time -- and cash. The company got court permission to take a loan for $100 million to keep the operation moving until an acquisition or auction is complete.

The private equity firms rumored to be eyeing Eddie Bauer have retail and apparel companies in their portfolios, which suggests a possibility that the company could be turned around with the right investment and management team. If not, I wonder if they'll sell the window decorations at the auction . . . always wanted my living room to look like a mall.

Bidders line up for bankrupt Bauer originally appeared on BloggingStocks on Tue, 14 Jul 2009 10:30:00 EST. Please see our terms for use of feeds.

Nike sells Starter brand to Iconix for $60 million originally appeared on BloggingStocks on Thu, 15 Nov 2007 11:02:00 EST. Please see our terms for use of feeds.

Barron's thinks (subscription required) that it might be time to look at Kenneth Cole Productions (NYSE: KCP), which currently trades right around its four-year low. With its cash pile and strong same store sales growth, the company could be an attractive value -- a rarity in fashion stocks.

Recently, BusinessWeek looked at Iconix Brand Group (NASDAQ: ICON), the company of Kenneth Cole's younger brother Neil. Iconix has a very different business model though. The company's strategy is to acquire brands, and then license design, manufacturing, and distribution out to third parties. This leaves Iconix to focus on acquiring strong brands and developing innovative marketing campaigns. Judging from the company's robust profits and strong share price growth, it's a strategy that's working. The company currently owns brands including Candie's, Bongo, Badgley Mischka, Joe Boxer, Rampage, Mudd, London Fog, Mossimo, Ocean Pacific, and Danskin.

Interestingly, Kenneth Cole may be borrowing a bit from his brother's playbook, recently snapping up '80s icon Le Tigre for up to $25 million.

Which of these is a better buy here? The Iconix model seems to have a lot more appeal, as the company relies on license fees and is able to maintain a lean operation. The multibrand strategy also eliminates the risk of an essentially single-label fashion company.

But the contrarian in me wants to go with Kenneth Cole, the once-proud fighter whose fallen on (relatively) hard times. But given that they trade at similar valuations and Iconix has much more impressive growth, I'd probably go with the little brother.

Is Kenneth Cole a good fit? How about his brother? originally appeared on BloggingStocks on Sun, 04 Nov 2007 11:10:00 EST. Please see our terms for use of feeds.