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FASHION LICENSING COMPANY Iconix Brand Group Inc. is about adding clothes, not taking them off. So it may have surprised some when the apparel giant, which owns the trademarks for brands including Badgley Mischka, Candie's and London Fog, emerged as a potential bidder for Playboy Enterprises earlier this month.
But retail insiders simply chalked it up to the clever acquisition strategy of Iconix chief executive Neil Cole, younger brother of famous fashion designer Kenneth Cole.
"It's a logical move for Iconix," says Matt Hogan, a brand strategist, who explains that owning the Playboy license would give Iconix the use of Playboy's famous bunny logo on everything from sunglasses to sweatpants.
The recession has not tripped up Mr. Cole's fashion firm, which acquires underdeveloped brands in apparel, footwear and home furnishings and turns them around with heavy marketing and exclusive retail agreements. Iconix, whose stock is up over 75% in the past year and currently trades near $12, saw third-quarter sales rise 8%, to $59.4 million, over last year, and net income increase 23%, to near $22.6 million. Unlike competitors such as Jones Apparel Group and Nexcen Brands Inc., Iconix is still in a buying...