Iconix Brand Group has taken a 50 percent stake in Hardy Way, the parent company of the Ed Hardy brand of apparel and accessories inspired by tattoo art, for $17 million: $9 million in cash and $8 million in stock. Depending on Ed Hardy’s 2009 results, Iconix could pay another $1 million in stock. For 2009, Hardy Way’s royalty revenue is expected to be $10 million.

The total revenues of the Iconix group, which also owns Starter, Danskin and Ocean Pacific, fell by 9 percent to $50.5 million in the first quarter ended March 31. The Mudd brand, which is being transitioned to an exclusive brand for the retailer Kohl’s, was cited as the main reason for the decline. However, the company lauded its successful roll-out of Op, Starter and Danskin Now at Wal-Mart stores.

The earnings before interest, taxes, depreciation and amortization (Ebitda) decreased by 6 percent to $36.3 million, with the Ebitda margin rising by 2.3 percentage points to 72 percent. Quarterly net income was down by 5 percent to $15.6 million.

Iconix forecasts revenues for 2009 to be $218 million to $225 million, an increase over previous guidance of $210-220 million.