Iconix Brand Group (Nasdaq: ICON) is a little-known brand-licensing firm that's behind a few well-known products such as Joe Boxer, Mossimo, and London Fog. Similar to competitor Cherokee, the company keeps margins sky-high and costs low by purposefully staying out of the manufacturing business, instead focusing on the licensing and marketing of brands it owns.
In the last five years, Iconix has returned an amazing 550% -- a compound annual growth of nearly 46%. The company is relatively small, with a $1.2 billion market capitalization, and it's taking on more debt -- via a recent $287.5 million convertible note offering -- to pursue more brand deals. While buying brands may sound like a boring business, it has generated exciting profits.